stablevalue.com: Category Stocks

Dow Jones Industrial Down More than 200 points

btr — Thu, 21 Jan 2010 20:48:01 -0500

As expected in the last post, it reached the resistance level and came down in a big way.

Dow Jones Industrials Retreated

btr — Wed, 13 May 2009 21:46:00 -0400

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.

Is the worst over yet?

btr — Sat, 20 Dec 2008 20:05:00 -0500

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.

Dow Jones Industrial Average Is Walking Out Its Downtrend

btr — Fri, 31 Oct 2008 19:54:00 -0400

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.

Market Rockets Back

btr — Tue, 28 Oct 2008 19:17:00 -0400

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.