Dow Makes Historical High After Short Bull Break!
The Dow closed yet another historical high today at 13211.88 points, breaking the important 13200 level in one clean shot. Breadth reading was also fantastic as advancers led decliners by a mile. Great earnings releases, retreating oil prices and a surge in new jobs creation in April, all served as catalysts to help investors decide that the bull run isn't quite nearly over yet. So far, the economic data and earnings release has been pleasing and hints at a slow by steady growing economy and that is what all markets need for long term growth.
TECHNICAL ANALYSIS
Interesting market action today. Yesterday, I gave the Dow it's final ultimatum to go up and today, at last, it kept the staircase formation intact and went up as I hoped it will. I had hoped for the Dow to go up by more than 50 points today in order to keep the bull run intact and, yes, today the Dow went up 75.74 points to close yet another historical high. What's more interesting is that the Nasdaq composite, which looked to be going down over the past few days and might affect the Dow, joined into the rally today and gained 1.04%. Well done! Bullish momentum has picked up slightly but looks obviously weaker than before, which is natural after such an amazing run up. We will continue to monitor for the first signs of a pullback as the market develops.
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2 Comments:
the new high and sustainability (hopefully) will be the key for option traders to make more money with "Call" option ...
cheers
stocktube
In fact, you should already be in call options when I called the rally back in 12 April. I had made over 200% profit so far with the DIA call options.
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