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Posts tagged ‘Dow’
The chart below shows the 23-day SMA for the Dow Industrials. There are around 23 trading days per month and this represents a rolling monthly average. It also smooths daily volatility. The March 2009 low was around 10% below the March 2003 low and the July 2011 high was around 10% below the October 2007 high. 12000 marks the first support to watch for this moving average.
Write it and they will come
In our Field of Dreams, we had a vision of Dow 12,000; S&P 1,300; and Nasdaq 3,000 back in October 2010. We have written and talked about these targets for the last 3 months and today was opening day. We felt it when we woke up this morning. For those of you who believed in us, welcome to the party.
Seriously, how many pros have called for a pullback or correction over the past few weeks or months? How many said the “Santa Claus” rally was over before it started? How many got nervous when the high-beta names started falling?
Too many for us to count, obviously. Perhaps they got scared last week when the Nasdaq was tanking or the S&P was threatening to fall below support. Little did they know, this was the testing period and a lot of the professional money managers failed to make the grades and got it wrong.
In fact, we said the market would pullback last week before the it would set new highs again. We went out a limb and stuck to our guns last week when the “pros” told you the market was going to correct or pullback. Heck, we even said last week was going to be a down week because of options expiration and we took profits on a number of trades and left the stronger ones open. However, we also OPENED three new bullish trades last Friday as we knew the bulls had more gas left in the tank. The knuckleheads who told you to get out are the same ones buying this morning.
From our Weekly Wrap October 31, 2010:
The S&P 500 fell less than a point and settled at 1,183. The index hit a high of 1,196 but was unable to crack our 1,200 target as it gained less than a point and went nowhere for the week. However, for October, the S&P popped 42 points, or 3.7%, and a run to 1,300 is in the cards if the bulls can break resistance while support remains in the 1,170-1,175 area with additional backup at 1,150. YTD, the index is up 6.1%.
The Nasdaq was the one index we did confirmation on for another leg up although Friday’s session was flat. Tech closed above our 2,500 target and the index is at 2,507 after clearing this hurdle last Wednesday. For the week, the Nasdaq added 28 points, or 1.1%, and for the month it gained nearly 140 points, or 5.9%. We have our sights set on 2,600-2,700 over the near-term and support is at 2,450, but, the monthly close above 2,500 for the first time since May 2008 was big for the bulls. The Naz is up 10.5% for 2010. (END)
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Dow +55.97 at 11004.55, Nasdaq +11.95 at 2395.62, S&P +5.92 at 1163.98
[] After a back-and-forth start to the day, the stock market has extended to session highs, with the Dow Jones Industrial Average reclaiming the 11,000 level for the first time since May 4, before the “flash crash.” Today’s modest +0.5% gain follows the pre-market employment data, which was headlined by a -95K Nonfarm Payrolls reading. This was well below the consensus expectation for no net change. Although the headline numbers came in below the consensus expectations, after digging into the data it turns out that the negative headline number was driven by government layoffs, making the report more benign than it may appear at first glance. T
Dow +208.44 at 10674.38, Nasdaq +40.66 at 2295.36, S&P +24.26 at 1125.86
[BRIEFING.COM] Positive data and bank earnings out of Europe set the tone for a strong buying effort, sending the major U.S. indices to gains between 1.8% and 2.2%.Confidence in Europe’s economy and financial system was bolstered by solid PMI readings throughout the continent and strong income growth by BNP Paribas and HSBC (HBC 53.76, +2.68). The continent’s major bourses climbed between 2% and 3% in response. In other overseas action, China’s Shanghai Composite and Hong Kong’s Hang Seng each rallied more than 1% overnight. In contrast to Europe’s bourses, their gains came amid a weaker-than-expected PMI reading.