Bulls Wakes Up As The Dow Breaks 13000 Points!

FUNDAMENTAL ANALYSIS
Incredibly, after just catching its breath for 2 days, the Bulls mustered enough energy from the great earning releases so far to break the historically important 13000 points! Even though oil price continues to threaten the $66 level, the lure of the 13000 points is too great to keep the bulls out. Internals are also great with advancers leading decliners by 2 : 1. Incredibly again, the Dow made 12000 points just last October and just 6 months later, it rose by another 1000 points! Is the economy really doing that well? Is the Feds really doing that well? Or is there a greater consipiracy behind all these?

TECHNICAL ANALYSIS
I must admit that today's market action went against all my expectations. I had expected the Dow's short term stochastics to at least retreat back down, off the overbought level before it has enough energy to break such an important psychological barrier... the 13000 points. However, I must say that the market was more bullish than I expected it to be but am I surprised? Not really. That's because the Dow is all used to performing resistance level breaks in the short term deep overbought region anyways. What made me look like a fool was the buying climax on the 20 April. I was convinced that the Dow needed a retreat before going for the 13000 break due to the buying climax (volume surge). However, it looked like this time, the over ADX still won the day as it continued to indicate a strong, raging bull trend. Well, I was able to break the delta neutrality and went long delta early today when the Dow displayed early signs of being able to break the 13000 points level. Well, I profited and kept myself safe when everyone's worrying if the market can go any further up, so, I still think I did a great job. :) The Dow is rising healthily on rising volume and I still see more upside to come interspersed with small retreats along the way. Its going to be and has always been a bumpy ride, isn't it?


Technical Chart By Worden Brothers TC2007 Charting Software
Voted Best Software By Readers Of Stocks & Commodity Magazine Since 1993!