I thought Dow Jones would not close higher than 9,000 points last Friday. I was wrong, the Dow Jones Industrial Average managed to push to a high of 9,065 and closed at 9,034 level. That seems to be a good news to cheer for on the 1st trading day of 2009.
But is Dow Jones Ready for a Bull Run?
I mentioned last week that a correction or retracement is inevitable on US stock market and Dow Jones Industrial Average. There was just a slight retracement observed in the last 5 days and following very closely to the 50d MA.
If we follow Alexandra Elder’s recommendation, we must always look at the stock market chart on both daily and weekly charts.
Let’s look at the US Dow Jones Industrial Average on the daily and weekly chart now!
Well, I have been published some stock market trends and some stock market picks from time to time. I found a few attractive stock market picks that is hard to resist. They are trading near to their 200d MA resistance and I believe they are going to fall soon based on technical analysis.
The reward/risk ratio are more than 2 and very attractive to me. Plus the major trend of these stocks are still down trending, so, it is now a best time to short. Therefore, I titled this post as “Please Do Not Read This if You Do Not Want Money”, it is a intended post only for those who like to make some money in the stock market.
Let’s check it out now!
After posting the rebound of Dow Jones at the beginning of the week, I mentioned that the Dow Jones, S&P500 and Nasdaq are all trading very near to the moving average resistance. I was predicting then that there was a possibility of retracement or correction coming soon.
Very soon, the market plunged on Monday. That’s the power of technical analysis as it can give us some information on the stock market trends and direction.
We saw last week that Dow Jones Industrial Average fell to new low and I was predicting that DJ will touch the 2002 low at 7,100. However, it did not touch exactly on 2002 low but it rebounded with a weekly gain to cheer for the Thanksgiving.
S&P and Nasdaq also have similar stock market trends. Where to you think the US stock market will head to next?
Let’s take a closer look at Dow Jones, S&P500 and Nasdaq now!
S&P500 has hit the 2002 low, but Dow Jones is still about 300+ points away from the 7,100 lowest level in 2002. Do you think Dow Jones will continue to dive to touch the 7,100?
I have done 4 trades so far this month. They are McDonalds, Lorillard, Airtran Holding and Safeway Inc. I think it is about time for me to give an update on their performance so far. Quick summary, I covered back McDonalds with a small profit. Lorillard was stopped due with almost break even price. Finally, I managed to book in a 30% and 20% profit on Airtran Holding and Safeway Inc respectively.
How did I book in profit within such a volatile market condition? Let’s check it out now!
Few days ago, I was still looking at the US market swing in the sideway market. However, US market took quite a big dive on Thursday while Dow Jones lost 400+ points. S&P500 also dived down to the S&P500 2002 low of 768 level.
Let’s take a look at the S&P500 stock index chart now!
