Stock Market Analysis

Thursday, July 19, 2007

The Dow Stopped At Critical 14000 Resistance Level...

It has been a pretty bullish trading day whole day today as the Dow opened high and maintained its pace throughout the trading session despite all kinds of lacklustre releases that didn't satisfy anyone. Sure, initial claims are at 2 months low (2 months, what kind of comparison time frame is that??), payroll is rising steadily (and so is the de-valuation in the US dollars...so, which is quicker than which?), some companies are turning in great earnings (does that mean the rest of the earnings will be great?), such news serves only to tickle, not satisfy. On the down side, Crude oil continued its rally as it breaks $75 per barrel and Bernanke with all his hawkish and overly political comments (man, when did our econs teacher teach us to talk like that???) continue to keep the full passion of investors outside the flood gates. Overall, this is a day which the bulls claimed victory but in the face of no concrete, satisfying news and a strong 14000 resistance level that has stopped the Dow's advance for a 4th straight day, it may take more than we think to keep this rally going.

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