The Dow went sideways today, closing marginally lower by 1 point as better than expected economic data brought the market back up from a red morning session.
Fundamentals
Weakness in European market led to a negative opening session this morning but was rescued by better than expected Pending Home Sales and Dallas Fed. Economic data continue to pour in better than expected recently, providing the support the market needs to move further. This is the first week of March 2012 and of course we would be getting the two super heavyweight economic data; ISM Index and Jobs Report. Better than expected performance on these two numbers would certainly help the market break out of the current stalemate. Investors rushed back for the safety of bonds today, depressing bond yields while options traders continue to keep total equities put call ratio close to par as uncertainty continues in the market.
Technicals
The Dow is currently up against an extremely strong 13,000 points psychological resistance level. The Dow usually makes a significant retreat to perhaps the 50MA level in the face of such strong resistance before it has enough energy to stage a breakout. In fact, we could see such a retreat occur even with better than expected data over the next few days.
For now, the Dow remains in all out bull trend.
Technical Bulls and Bears Battle It Out!
The Dow gained a marginal 15 points today as the bulls struggled against the bears.
Fundamentals
The optimistic Chicago Fed released before market took the US market higher right from the start all through the morning after this President's day long weekend. Early strength was quickly taken back by a horde of marauding bears, taking the market back all the way down to the breakeven line. Investors still reallocated back into equities, raising bond yields across the board and options traders continue to trade in favor of call options. As such, today's afternoon weakness is likely only a short term profit taking action.
Technicals
Resistance between the 12,800 and 13,000 area is extremely strong right now and with the market overdue a significant intermediate retreat, this could be dangerous. The Dow needs to hold above the 30MA to stay safe but its really just a matter of time now the correction begin.
For now, the Dow remains in all out bull trend.
Fundamentals
The optimistic Chicago Fed released before market took the US market higher right from the start all through the morning after this President's day long weekend. Early strength was quickly taken back by a horde of marauding bears, taking the market back all the way down to the breakeven line. Investors still reallocated back into equities, raising bond yields across the board and options traders continue to trade in favor of call options. As such, today's afternoon weakness is likely only a short term profit taking action.
Technicals
Resistance between the 12,800 and 13,000 area is extremely strong right now and with the market overdue a significant intermediate retreat, this could be dangerous. The Dow needs to hold above the 30MA to stay safe but its really just a matter of time now the correction begin.
For now, the Dow remains in all out bull trend.
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Enjoy your President's Day holiday!
Enjoy your President's Day holiday!
Dow Retreats Despite Better Empire State Index
The Dow retreated 97 points today despite better than expected Empire State Index.
Fundamentals
What was an amazing performance on the Empire State Index was overshadowed by a worse than expected Industrial Production, leading to a mixed morning session which was ultimately overshadowed by short term profit taking. Bond yields remained stable with long term bond yields rising as investors take a longer view on equities. Options traders took total equities put call ratio above par in favor of put options trading once again inline with what happened in the market today. Indeed, this is a period of rather good economic data faced with lots of profit taking and resistance and is a period which will require continued better than expected economic data for the rest of the week in order to see a breakout. Good thing is that the trend of economic data seems to be upwards for this period of time so odds are still good for some more upside.
Technicals
The Dow continues to struggle around the 12,800 points resistance zone as its 30MA continues to catch up. Even though the resistance around this area has been significant, strength is significant as well with the breakout candle low holding strongly. It should not be long before a breakout occurs.
For now, the Dow continues in all out bull trend.
Fundamentals
What was an amazing performance on the Empire State Index was overshadowed by a worse than expected Industrial Production, leading to a mixed morning session which was ultimately overshadowed by short term profit taking. Bond yields remained stable with long term bond yields rising as investors take a longer view on equities. Options traders took total equities put call ratio above par in favor of put options trading once again inline with what happened in the market today. Indeed, this is a period of rather good economic data faced with lots of profit taking and resistance and is a period which will require continued better than expected economic data for the rest of the week in order to see a breakout. Good thing is that the trend of economic data seems to be upwards for this period of time so odds are still good for some more upside.
Technicals
The Dow continues to struggle around the 12,800 points resistance zone as its 30MA continues to catch up. Even though the resistance around this area has been significant, strength is significant as well with the breakout candle low holding strongly. It should not be long before a breakout occurs.
For now, the Dow continues in all out bull trend.
Dow Continues Sideways...
The Dow gained 72 points today on bargain hunting.
Fundamentals
The US market did an impressively positive day today in a quiet day without any major economic releases. Nothing much has changed since my post last week, the better than expected jobless claims last Thursday also failed to provide the stimulus needed for a true breakout. The leading indicators coming up for the rest of the week might just do the trick but trading is still expected to be conservative ahead of the President's Day long weekend. Even though the market has been largely sideways for the past week, I still took a nice 43% profit on HES using my Star Trading System. My leveraged managed account service will also be launched this week with an expected reward risk ratio of 6:1, email me at founder@mastersoequity.com if you wish to be on priority list.
Technicals
The Dow continues to bouncing along sideways atop the 12,800 points resistance zone. However, it is now way off short term overbought condition and its 30MA has already caught up with it and provides short term support. This means that the Dow is once again ready for a breakout and that might happen on the back of better than expected leading indicators coming up this week.
For now, the Dow remains in all out bull trend.
Fundamentals
The US market did an impressively positive day today in a quiet day without any major economic releases. Nothing much has changed since my post last week, the better than expected jobless claims last Thursday also failed to provide the stimulus needed for a true breakout. The leading indicators coming up for the rest of the week might just do the trick but trading is still expected to be conservative ahead of the President's Day long weekend. Even though the market has been largely sideways for the past week, I still took a nice 43% profit on HES using my Star Trading System. My leveraged managed account service will also be launched this week with an expected reward risk ratio of 6:1, email me at founder@mastersoequity.com if you wish to be on priority list.
Technicals
The Dow continues to bouncing along sideways atop the 12,800 points resistance zone. However, it is now way off short term overbought condition and its 30MA has already caught up with it and provides short term support. This means that the Dow is once again ready for a breakout and that might happen on the back of better than expected leading indicators coming up this week.
For now, the Dow remains in all out bull trend.
Dow Continues Sideways...
The Dow gained marginally by 5 points today in a volatile trading day.
Fundamentals
Investors were back and forth today as fundamentalists buying into the recovering economic outlook battle technicians selling into the resistance. Intraday range was volatile but also limited due to a lack of strong catalyst on either front. However, the fact that the market was generally higher by the end of the day shows that strength in the market is still significant. Tomorrow's jobless claims is this week's highlight and any surprise on that front might be the catalyst the market needs to go either direction.
Technicals
The Dow continues to struggle around the 12,800 points resistance zone following last Friday's marginal breakout. However, it seems like there are plenty of strength in the market with the bulls taking back lost ground most of the time despite the Dow being in short term overbought condition and overdue a pullback. In the face of such uncertainty, it is always better to have a longer outlook and there is no doubt the longer term outlook is positive.
For now, the Dow remains in all out bull trend.
Fundamentals
Investors were back and forth today as fundamentalists buying into the recovering economic outlook battle technicians selling into the resistance. Intraday range was volatile but also limited due to a lack of strong catalyst on either front. However, the fact that the market was generally higher by the end of the day shows that strength in the market is still significant. Tomorrow's jobless claims is this week's highlight and any surprise on that front might be the catalyst the market needs to go either direction.
Technicals
The Dow continues to struggle around the 12,800 points resistance zone following last Friday's marginal breakout. However, it seems like there are plenty of strength in the market with the bulls taking back lost ground most of the time despite the Dow being in short term overbought condition and overdue a pullback. In the face of such uncertainty, it is always better to have a longer outlook and there is no doubt the longer term outlook is positive.
For now, the Dow remains in all out bull trend.
12,800 Gravitational Pull Still Strong
The Dow moved sideways today, closing down marginally by 17 points.
Fundamentals
After last Friday's explosive day, a few sideways days is to be expected especially on a day like this with completely no economic data release. Short term traders took some profit off the table while some investors reallocate back into the safety of bonds. However, nothing in the cards suggest that there is a change in general market sentiment especially after last Friday's powerfully positive jobs report. There is no doubt the US economy is still recovering despite some toxic waste remaining here and there, especially in the Euro zone. However, it is just a matter of time world markets will enter an extended period of volatility again on toxic waste clearing like what we saw back in the 2005 period and I think the time might be soon.
Technicals
The Dow made a run for it last Friday and barely broke the 12,800 points resistance level. However, it is clearly still within the gravitational pull of the 12,800 points zone and could still turn around for a short term retest of the 30MA before it has energy to prove this breakout as a real one. This is especially so with the ever declining average trading volume since this bull leg begun last October. In fact, the market might require a correction as deep as the one last November in order to create better entry points and woo some traders and investors back.
For now, the Dow remains in all out bull trend.
Fundamentals
After last Friday's explosive day, a few sideways days is to be expected especially on a day like this with completely no economic data release. Short term traders took some profit off the table while some investors reallocate back into the safety of bonds. However, nothing in the cards suggest that there is a change in general market sentiment especially after last Friday's powerfully positive jobs report. There is no doubt the US economy is still recovering despite some toxic waste remaining here and there, especially in the Euro zone. However, it is just a matter of time world markets will enter an extended period of volatility again on toxic waste clearing like what we saw back in the 2005 period and I think the time might be soon.
Technicals
The Dow made a run for it last Friday and barely broke the 12,800 points resistance level. However, it is clearly still within the gravitational pull of the 12,800 points zone and could still turn around for a short term retest of the 30MA before it has energy to prove this breakout as a real one. This is especially so with the ever declining average trading volume since this bull leg begun last October. In fact, the market might require a correction as deep as the one last November in order to create better entry points and woo some traders and investors back.
For now, the Dow remains in all out bull trend.
US Market Rallies On ISM Index
The Dow gained 83 points as ISM index continues to grow.
Fundamentals
ISM Index continues to show growth this month, encouraging investors back into equities. Bond yields surged across the board as investors reallocate back into equities. Options traders continues to keep trading in favor of call options as bullish sentiment continues. However, despite today's rally, the market is still largely range bound and it will certainly take a strong number on Friday's Jobs Report for the bulls to continue.
Technicals
Even though today's rally was encouraging, it is still nothing more than a continuation of the Dow's sideways struggle around the 12,800 resistance zone. In fact, the Dow failed intraday at the 12,800 level today so it is evident that the resistance is still significant. However, the Dow is now off its short term overbought condition and may soon muster enough energy for a breakout. So far, there is nothing in the cards to suggest that the Dow is going to fail at this level once again.
For now, the Dow remains in all out bull trend.
Fundamentals
ISM Index continues to show growth this month, encouraging investors back into equities. Bond yields surged across the board as investors reallocate back into equities. Options traders continues to keep trading in favor of call options as bullish sentiment continues. However, despite today's rally, the market is still largely range bound and it will certainly take a strong number on Friday's Jobs Report for the bulls to continue.
Technicals
Even though today's rally was encouraging, it is still nothing more than a continuation of the Dow's sideways struggle around the 12,800 resistance zone. In fact, the Dow failed intraday at the 12,800 level today so it is evident that the resistance is still significant. However, the Dow is now off its short term overbought condition and may soon muster enough energy for a breakout. So far, there is nothing in the cards to suggest that the Dow is going to fail at this level once again.
For now, the Dow remains in all out bull trend.
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