Some Retirees Should Stay Retired

FUNDAMENTAL ANALYSIS
As if sick and tired of seeing the market so bullish, a retiree should somehow make some unresearched comments and put the market into a slight panic. What was shaping up to be a great day and a historical high for the Dow, ended with the Dow down marginally by 14.30 points, taking back the day's gains. Well, some retirees should just stay retired and not make comments on a stock market on the other side of the world which he does not understand at all. Having been here in Shanghai for the past 3 years, I would say that the china bubble will come, in the same fashion ALL new markets do, but there is still a LONG way more to go, why? That is because the China market is now public money driven and because so many people has made money in the markets, more and more people are entering the market. There are still A LOT more population who are waiting in line to enter the market no matter what the government does or what the inflation numbers says... they just want to make money. PERIOD. The bubble will burst after new money runs dry... which I would say is a long way more to go with such a huge population.

TECHNICAL ANALYSIS
Another sideways, downwards inclined day for the Dow. Since the rally begun back in end of March, we have not seen a straight 3 days decline. Even though the declines are marginal and should be considered sideways movement, they are declines all the same. However, there remains no indications that the staircase formation is coming to an end. We should see the Dow make a new high tomorrow or Friday, if not, then we should be prepared to go delta neutral again.


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