4 More days to go before Christmas and another 4 more days to go before 2010 new year celebration. We are left with only 8 trading days in 2009.
Do you know what is the performance of 2009 stock markets so far? At Which point do you think the markets will close on 31 Dec 2009?
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.
Is Dow Jones Upwards Momemtum Sustainable?
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.
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. This suggests Bearish Correction is Coming!
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 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.
However, a tough 200d moving average is just around the corner!
I was anticipating the stock market to show some weakness or even would have done some correction this week. However, the market seem to continue its bull steam and keep running up. Are we ready for a bull run?
Fed chief Bernanke gave some optimistic report to the US congress that he expects the economy to start growing again this year. There are also report showing that the rate of job losses is slowing down. These are some good news to cheer the market up.
Let’s listen to what a hedge fund manager has to say about our current market!
It is a earning report season now in the US markets. Ford today announced a better than expected result and this good news seem to push the US market higher.
Chrysler is close to filing Chapter 11 of U.S. Bankruptcy laws as early as next week.
Everyone is waiting for the news of GM.
Another round of market tsurami might be in the formation… Beware, and exercise extra cautions if you are still in the market.
