stablevalue.com: Category Trading

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.

Dow Jones Back in 8100 level

btr — Thu, 30 Apr 2009 21:52:07 -0400

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.

The big board retesting 8,000 level

btr — Thu, 15 Jan 2009 20:35:00 -0500

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.

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.