The Dow retreated 139 points today despite continued growth in sales.
Fundamentals
Better than expected sales data today failed to overcome continued bad news from the Euro zone. This, along with the fact there is but one more full trading day before the New Year long weekend, caused investors to rush back for the safety of bonds once again, depressing bond yields strongly across the board. However, with the current trend of better than expected economic performance, we could see a very encouraging first quarter of 2012 as long as the Euro doesn't blow up. Yes, it is still a matter of time the Euro mess gets resolved painfully in my opinion.
Technicals
The Dow retreated today as I have expected on retreating volume as it retests the integrity of the recent breakout. In fact, the Dow could remain around this area for the rest of the week as volume retreats and investors get ready for the new year. It seems like Santa Claus isn't visiting the market this year afterall.
For now, the Dow remains in short term bull trend within an intermediate term neutral trend and primary bull trend.
Final Week of 2011...
Welcome back from the Christmas Holiday!
This is the final week of 2011 and is therefore another holiday shortened week with market closing early on Friday ahead of the New Year. The market is expected to trade with low volume and therefore fairly volatile this week with focus on Tuesday's Consumer Confidence and Thursday's Jobless Claims as well as Chicago PMI. Last week has been a week of great economic numbers, allowing the Dow to make a strong topside breakout of the 12,200 zone. However, the breakout happened on such low volume it is hard to see a strong trend coming out of it unless we see some strong followup this week, which is unlikely to happen on strong volume either. As such, it is still time to be cautious and not to be too enthusiastic on jumping in on the bullish wagon yet.
This is the final week of 2011 and is therefore another holiday shortened week with market closing early on Friday ahead of the New Year. The market is expected to trade with low volume and therefore fairly volatile this week with focus on Tuesday's Consumer Confidence and Thursday's Jobless Claims as well as Chicago PMI. Last week has been a week of great economic numbers, allowing the Dow to make a strong topside breakout of the 12,200 zone. However, the breakout happened on such low volume it is hard to see a strong trend coming out of it unless we see some strong followup this week, which is unlikely to happen on strong volume either. As such, it is still time to be cautious and not to be too enthusiastic on jumping in on the bullish wagon yet.
Optimism Ahead of Christmas
The Dow closed higher by 61 points today as most economic data today beat consensus.
Fundamentals
It was truly a day jammed packed with economic data today. Even though GDP didn't turn out as well as expected, the much better than expected Jobless Claims, Consumer Comfort, Consumer Sentiment and Leading Indicators quickly took the market into the green and held it there for the rest of the day. Today's data continue to paint the picture of economic recovery particularly in the area of jobs and consumerism. Trading volume was also very healthy today, setting the market up for a positive Christmas week.
Technicals
The Dow is once again at the doorstep of the 12,200 points resistance zone. However, this time round, the Dow has a real chance at breaking the resistance zone at last and that might happen next week.
For now, the Dow remains in short term neutral trend within an intermediate neutral trend and primary bull trend.
Fundamentals
It was truly a day jammed packed with economic data today. Even though GDP didn't turn out as well as expected, the much better than expected Jobless Claims, Consumer Comfort, Consumer Sentiment and Leading Indicators quickly took the market into the green and held it there for the rest of the day. Today's data continue to paint the picture of economic recovery particularly in the area of jobs and consumerism. Trading volume was also very healthy today, setting the market up for a positive Christmas week.
Technicals
The Dow is once again at the doorstep of the 12,200 points resistance zone. However, this time round, the Dow has a real chance at breaking the resistance zone at last and that might happen next week.
For now, the Dow remains in short term neutral trend within an intermediate neutral trend and primary bull trend.
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