Archive for the ‘Dow Jones Industrial Average’ Category
Dow Industrials, Transports, S&P Close Below Key Moving Averages
Monday, June 22, 2009 15:06 No CommentsLast week, we mentioned that technical indicators began to turn negative. Technical damage continued today as the Dow Jones Industrial Average, Dow Jones Transportation Average, and S&P 500 closed below their pivotal 50 and 200 day moving averages (first time since March), with all 3 averages registering an RSI sell signal. NASDAQ bucks the trend [...]
S&P Breaks Uptrend; Dow Jones Closes Below 200-Day-Moving-Average
Tuesday, June 16, 2009 15:55 No CommentsTechnical indicators are beginning to turn negative for the first time since the beginning of the March rally. The S&P 500 index violated its 3-month uptrend while the Dow Jones Industrial Average closed below its 200-day-moving-average. Momentum indicators have turned bearish.
The Dow Jones (Chart below) is still holding on to its uptrend line though RSI [...]
Market Corrects as Dollar Climbs
Monday, June 15, 2009 20:59 No CommentsWe’ve written about the relationship between US equities and the US dollar. Stocks bottomed in March and began to move up as the US Dollar topped during the same time and began to move down. Todays market selloff came as an oversold dollar (short term) found buyers.
If the dollar continues this advance, US equities should [...]
Inflating a Bull Market
Wednesday, June 10, 2009 19:31 2 CommentsMuch has been made over the recent stock market rally. The advance from the bottom has, indeed, been historic and has caught many of us by surprise. Though the market was extremely oversold and due for an upward correction, we continue to be amazed at its strength and longevity. A closer examination, however, reveals that [...]
Spring Rally Has Reached Completion
Tuesday, April 14, 2009 17:35 9 CommentsWhat a wild ride these past few weeks have been. Only a month or so ago the Dow Jones Industrial Average traded down to 6,500 amid an onslaught of catastrophic economic news. The market has since rallied 25% from its low with insolvent banks such as Citigroup and Bank of America quadrupling in value. Jim [...]
Sell in May and Walk Away
Monday, April 13, 2009 20:41 2 Comments“Sell in may and walk away” is an old saying on Wall St. The stock market tends to experience periods of relative under and out performance based on seasonality. From 1897-2008, for example, the average return of the DJIA is 4.6% between November to April, while only averaging 2.5% (Almost half) between the months of [...]
Media Calls a Bottom as Credit Market Calls for Panic (Charts)
Tuesday, March 24, 2009 15:29 1 CommentMuch has been made (mostly by the mainstream media) over the recent rally in the Dow Jones Industrial Average. Many of the usual suspects, including those that have been wrong for the past 3 years, have been quick to call a bottom. We, as technicians, tend to pay little attention to CNBC, Fox Business, etc. [...]
Dow Jones: Rally Losing Steam
Monday, March 16, 2009 18:25 1 CommentThe 60 minute chart below suggests that the recent rally in the Dow Jones is losing steam. In our previous post, we noted that the current move may have a bit more to go before turning back down.
Stocks: Oversold Rally Will Soon be Tested
Thursday, March 12, 2009 16:06 2 CommentsThe Dow Jones Industrial Average rose almost 240 points (3.5%) today. As mentioned in a previous post, large daily percentage gains are more consistent with bear markets than bulls. Todays rally was led by banks and REIT’s, two of the most beaten up and oversold sectors – also consistent with a bear market correction.
Below is [...]
Charles Dow Rolls in His Grave: The Distortion of the Average He Made Famous
Friday, March 6, 2009 17:57 6 CommentsHave you ever asked yourself why the Dow Jones Industrial Average contains non-industrial stocks? Why such a large weighting is given to financial companies such as American Express, Bank of America, Citigroup, JP Morgan and AIG (Before its removal)? After all, you wouldn’t expect to see General Motors included in the healthcare index or Goldman [...]





















