Monday
The Dow is up 72 points.
Media and Pundits - Rally!!
Tuesday
The Dow is up 4 points.
Media and Pundits - Uh-oh, things are shakey!
Wednesday
The Dow is down 97 points.
Media and Pundits - We're in the crapper!
Thursday
The Dow is up 123 point.
Media and Pundits - Yea, things are good. Rally!
Friday
The Dow is up 45 points.
Media and Pundits - Rally!!
Pundits. Who in the heck coined that word anyhow? <Sigh> Yes, the media, the pundits, the so called "experts" all have an opinion on every hourly move in the market. And yet Warren Buffet, who rarely looks at the daily moves of the Dow, is acknowledged by these same people as the greatest investor of all time. Huh? Go figger!
So here's the skinney from this media pundit who wishes he was an expert. Now that the VIX is under the 50 SMA and better yet, under 20, sanity has returned to the market. So the wild daily moves spurred by nervous nellies everywhere have disappeared into rational moves. The "news" isn't driving daily 300 point swings. Thank goodness.
The DIA, while looking a bit over-bought to many, shows a break out Friday! AGAIN! Yes, we are moving to a new level. I have repeatedly mentioned that we have been "bumping" up against resistance. Trying to break thru to the next level. A glance at the chart below shows the breakout. Price is clearly above the top resitance line. Those resistance levels wi;; now become support and we are moving to the 130 mark (13,000 on the DOW)! Yeeeeee-Haw!
Do we need a pull back. Yes. And it will happen sooner or later. But so what!? Remember that slogan we've been bantering about? The trend is your ............what? Excuse me? I can't hear you! Yes, the trend is your FRIEND! And until it ends this trend is clearly up. So keep those stops in place. Precious metals are a hold (you might even consider reducing your positions). Stocks are the place to be at the moment. DUH!
Below are the charts. The Daily and the Monthly. Please note that we're not that far from the all time high of the DIA, and hence the Dow. I suspect it will take several attempts to pierce the 130 level and move above that. THe Bulls they are a snorting!!
CURRENT MARKET TRENDS
Short Term (Daily Chart) – UP
Medium Term (3 day chart) – UP
Long Term (Weekly Chart) – UP
No comments:
Post a Comment