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US Dow Jones Stock Market Trend

KP Yang — Tue, 24 Nov 2009 14:52:10 +0000

I have not posted US Dow Jones stock market trend for quite a long while since June. And I am sure you know that US Dow Jones has been going upwards in the past 4 months as the world economy is recovering.

There are lots of enthusiasm in the economy recovery, and US Dow Jones has therefore been running upwards.

However, if comparing to many other emerging markets, US Dow Jones has been lagging behind the BRIC.

Is Dow Jones Upwards Momemtum Sustainable?

The question many people like to ask now is whether the bull market is sustainable on Dow Jones. Let’s take a look at the Dow Jones chart and analyse it using Technical Analysis.

If you look at the price action now, the upward channel is still valid, price is still moving above all the major moving average lines, therefore the price upward momemtum is still valid.

Volume is reducing, which can form a possible volume divergence, we just need to monitor closely for a possible trend reversal.

Looking at the indicators, MACD is trending in the positive region, suggesting a upward trend. The MacD histogram is reducing suggesting a possible short term correction.

RSI has been trading above 40%, suggesting the bull trend is still valid.

Stochastic is showing oversold in the market. A short term correction is possible.

In summary, the price and indicators all show that the long term upward movement is still intact as of now. Though there is a possible of short term correction and volume divergency may further suggest a possible trend reversal.

Given all this information, I will be willing to go in long at the moving average support to bet the market is continuing its upward movement with a stop loss at 5% below the support.

Dow Jones Stock Market Trend Nov 24, 2009

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Multiple Doji On Dow Jones

KP Yang — Wed, 10 Jun 2009 14:27:01 +0000

I saw Doji formation on Dow Jones last week, plus the 200d MA resistance, that was the first bearish signal for me that market correction is coming. 4 -5 trading days has passed and we are still seeing the Doji like formation almost everyday.

This shows that the market is still very undecisive now. It might be a tug of war between the bull and the bear this week.

Falling Volume on Dow Jones is Concern

I am seeing the volume falling on Dow Jones, that’s the key important bearish sign on top of the stagnant price movement.

The best strategy to apply now is hold and watch. We need to see a better signal to confirm the market direction first before taking action!

Dow Jones Industrial Average

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Doji Formed on Dow Jones : Bearish Correction Coming!

KP Yang — Wed, 03 Jun 2009 15:38:52 +0000

I was looking at Dow Jones hitting the 200d moving average (MA) resistance. Indeed, the index was stopped right at the 200d MA resistance and a doji was formed.

Doji Formation on Dow Jones

A doji suggested that a short term correction is underway, we should see some fall on the US stock market in the next 2 days. In addition, Fed chief Bernanke is now suggesting the US government to start working towards reducing deficit, will this news become the stopper to end the bull run?

It is hard to say at this junction, but let’s monitor closely to how the market reacts in the next 2 days, there is a likelihood to end the bull run if the support is broken.

Doji Formation on Dow Jones

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Stock Analysis of Apple

KP Yang — Wed, 03 Jun 2009 15:30:28 +0000

Apple has scheduled to make some big announcement next week. Maybe some update on the next generation iPhone, or maybe some update to the possible netbook, or its Mac OS Snow Leopard.

At this junction, let’s look at the analysis of Apple now!

Watch Analysis of Apple Stock

Stock Analysis of Apple

Dow Jones Hit 200d MA Resistance

KP Yang — Tue, 02 Jun 2009 16:15:24 +0000

I posted yesterday Dow Jones will be resisted by the 200d MA. Indeed, you can see that the high of Dow Jones hit on the 200d MA and closed lower. Again, this demonstrate the power of technical analysis as it helped us to know where is the possible ceiling to take profit.

Dow Jones hit 200d MA Resistance

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Dow Jones Broke Immediate Resistance, Testing 200d MA

KP Yang — Mon, 01 Jun 2009 15:27:39 +0000

Dow Jones opened higher at the start of the week with a big cheer to the market to move higher. Dow Jones now broke the resistance of the consolidation phase and this may suggest to have one more round of bull run again.

Dow Jones Testing Tough 200d Moving Average Resistance

Its immediate resistance will now be the 200d moving average. This is a very stubborn and tough resistance to break. Breaking 200d MA may suggest continuation bull run is in place. Likely Dow Jones will hit the 200d MA resistance and retrace downward before we can see a clearer picture on the next market movement.

Dow Jones Testing 200d Moving Average

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Official News : General Motors File for Chapter 11 Bankruptcy

KP Yang — Mon, 01 Jun 2009 15:14:18 +0000

After all the negotiation and restructuring exercise, General Motors finally file for Chapter 11 Bankruptcy. However, interestingly, Dow Jones is gaining big news while this news is annouced.

GM’s bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.

As it reorganizes, the fallen icon of American industry will rely on $30 billion of additional financial assistance from the Treasury Department and $9.5 billion from Canada. That’s on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans.

General Motors Dropped from Dow Jones Industrial Average

Together with this bankruptcy annoucement, Dow Jones is dropping General Motors and Citigroup from its 30 stocks index, replaced by Travelers & Cisco.

General Motors

S&P 17 Week Correction – Beware!!!

KP Yang — Tue, 26 May 2009 16:03:36 +0000

I was looking at Dow Jones doing some consolidation last week and I have also warned of possible weakness in the US stock market. The market seems to be able to still hold pretty well so far.

I came across a video analysis on the S&P500 to show some weakness the weekly chart as well. There re-enforce the possibility for the stock market to do some correction in the upcoming weeks.

Watch the video now!

S&P500 Week Cycle Weakness

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.