Dow Jones Industrial Down More than 200 points
Posted by btr Fri, 22 Jan 2010 01:48:01 GMT
As expected in the last post, it reached the resistance level and came down in a big way.
| stablevalue.com a blog on stock market and things of interest |
Posted by btr Fri, 22 Jan 2010 01:48:01 GMT
As expected in the last post, it reached the resistance level and came down in a big way.
Posted by btr Tue, 08 Sep 2009 01:05:41 GMT
Dow Jones Industrials has completed another leg of up trend building since last pullback to 8100.
Current resistance at 9600 has not been broken. A pullback to 8800 is likely if it fails to break out 9600.
However, if 9600 is taken out, the next resistance is 10,750!

Posted by btr Tue, 08 Sep 2009 00:19:00 GMT
Here we took a look at one of Vanguard Bond Funds: VFSTX. Yield 4.41%; YTD return 10%; investment grade corporate bonds; average maturity 2.6 yr.
It suffered a 10% drop in price in 2008. The actual return was -5%, which was big in short term investment grade bond fund.
What was the cause of that big drop? Client redemption? Maybe considering credit crisis occurred last year. A few bond holdings went under? Maybe too. Had it owned Lehman Brother, for example.
It’s quite interesting that it has a unusual V-shape recovery after the drop. Obviously the relative higher yield has been attracting a lot of investors looking for better returns on their short term investment. Has it also attracted a lot of people who are basically using it as money market funds? Maybe.
Another reason for the recovery might be the valuation of its certain holdings has recovered since the credit crisis.

For comparison, here’s Fidelity FBNDX chart, which showed similar drop last year.
If you have owned similar fund, you probably want to pay closer attention to its price movement.

Posted by btr Thu, 14 May 2009 01:46:00 GMT
It’s down more than 180 points. If the current uptrend line is broken, the first support is at 8000-8100 level, which could become a good base to build some long positions if the worst is over. Let’s watch closely as overall it’s oversold at this point. The V shape bounce needs some time to consolidate even we’re entering a new uptrend.
The next support is 7500, which is previous low before this last leg down.

Posted by btr Fri, 01 May 2009 01:52:07 GMT
Dow Jones Industrial has climbed back over 8100 level.
It has approached the downtrend line very closely. Although there’s a chance for it to break the downtrend line, but before it happens, I’d rather to sell into this strength to build more cash position.
Posted by btr Tue, 24 Feb 2009 05:13:00 GMT
Dow Jones Industrial has broken its major support around 8000. There’s no clear support but some round number at 7000 or 6000. 5600 is a support.
Where will the market go from here? Not sure but we can try to read the market and right now it’s going south.
Posted by btr Fri, 16 Jan 2009 01:35:00 GMT
INDU is retesting the 8,000 level again. As we can see, it’s currently over sold and the volume is slightly above average. As we have said before, around 8,000 is the major support level. For a short-term trade, it’s time to buy some.

Posted by btr Sun, 21 Dec 2008 01:05:00 GMT

Dow Jones Industrial Average has been up and down for the past many weeks but it appears that it has moved towards sideways. As recession has been officially announced and confirmed, how much has the market priced in all the bad news?
Certainly investors are looking for values after significant drops, but it’s not clear that if it will range bound between somewhere below 8000 and somewhere above 9000.
If it builds a long base above 8000 and consolidates the base, we may see more upside but we need to see the confirmation.
Posted by btr Fri, 31 Oct 2008 23:54:00 GMT

It closed up today and the week so it’s following through the big shoot up the other day. As we can see that on the daily chart, it’s in short-term over bought condition now. It’s slowly walking out the downtrend line, but we should be cautious as the volume was not confirming.
If you have significant equity positions in your portfolio, any rally into 9,500-10,000 zone can be your opportunity to lighten up and preserve your capital during this bear market.
Posted by btr Tue, 28 Oct 2008 23:17:00 GMT
All major markets rocket back over 10% today. A lot of short squeezes probably. I don’t believe that there’re so many longs that couldn’t wait and jump on the buying spree.
On the monthly chart of Dow Jones Industrial Average (INDU), you can see that we’re approaching previous low, which occured 5 years ago. Have we reached the bottom yet? Not sure, but we might be near the bottom judging by the previous low, which is the current support level.

The looming global recession is on everyone’s mind, so it’s possible that the support may not hold. There will be many ups and downs around that support. We can certainly play longs at the support level and shorts at any rally near 9,500/10,000 zone. The markets are currently in oversold condition and volatility will remain high as seen in the past a few weeks.
On the 3-month daily chart, INDU is moving away from the oversold condition. If we don’t see a follow through on this snap back, the downward trend will continue. 8,000 looks like a good support for now and the more fight between the bears and bulls around 8,000 the stronger it will become. If the downtrend continues, 7,500 is the next major support to watch.

Stocks rallied Wednesday, with the Dow, Nasdaq and S&P 500 all closing at new fresh 2010 highs, after the U.S. and Japanese central banks chose to keep interest rates low and the Senate passed a key jobs bill.more
A few weeks ago I read Paul Kedrosky’s post on how contrarianism is a fad and how he thinks that most contrarians are just posing for the camera. Jason Goepfert wrote a nice rebuttal (with an eye-catching title) about how there’s good reason to be a contrarian in certain situations. He more
It is nonetheless plain that relations between Israel and the Obama administration are indeed in crisis. The spark was last week’s approval by Israel’s interior ministry of 1,600 new homes in Ramat Shlomo, a Jewish suburb in East (Palestinian) Jerusalem. This coincided not only with a vi more
The Bank of Japan has moved to head off government and market pressure to do more about deflation by doubling the amount available to banks through a loan scheme more
A brief reprieve from regular programming to bring you this entertaining story out of fantasy land.. I mean Hollywood. Lindsay Lohan, clearly confused and out of touch with reality OR “just following the advice of a greedy lawyer”, is actually filing a lawsuit against Etrade more
There’s a new “capital market platform” in China called ChiNext. You can read about it here. Dinglong came public back in February and is up a little bit since then but has put in a Death Star formation (this is a joke), which means it’s probably finished for now. This mark more
The Chinese currency requires a multilateral rules based solution rather than a bilateral confrontation. What is needed is a new rule in the World Trade Organisation proscribing undervalued exchange rates, writes Arvind Subramanian more
"Every once in a while you must go to cash, take a break, take a vacation. Don't try to play the market all the time. It can't be done, too tough on the emotions." - Jesse Livermore In the wisdom... more
U.S. venture capitalists on the hunt for the next Research in Motion stock are returning to Canada, and their pace could quicken thanks to a new piece of tax reform proposed in Canada's annual budget. more
Long-term mutual funds had net inflows in the latest week, making it 52 weeks in a row that new investments outpaced withdrawals. more
THis was a mixed session wit the Russell 2000 and Nasdaq continuing to outperform the larger cap indices. The small caps look pretty good here as they extend above their January highs. The market is stretched (overbought) and I'm still... more
Got an interesting press release this morning from the Nasdaq OMX Group, which runs the Nasdaq stock exchange. more