2008 At Last!
Its nice to be back at last after such a long break. :)
The Dow did a disappointing and dangerous looking dip over the past few days but I am going to deem it an unreliable indication of where the market is going to go because much of those profit taking is due to end of year closing of positions and fund drawouts on very low volume. Today's big mover is definitely going to be the ISM index at 10:00 eastern (see stock market calendar). The ISM index, or Institute for Supply Management Manufacturing Index. This the first BIG economic indicator every month and is definitely the most important indicator released by the private sector. This index measures the health of the manufacturing sector and indirectly, the health of the economy. The ISM index is also known as the PMI or Purchasing Manager's Index. A higher PMI is bullish for the stock markets now in diminishing recessionary fears. This also mean that any market action before 10:00am today is largely unreliable.
On the technical front, the Dow continues to ride atop its 50WMA on the weekly charts, waiting for a breakout. With the long term bull trend strongly intact, it could be expected that a breakout to upside will happen especially with folks investing their remaining December bonuses.
The Dow did a disappointing and dangerous looking dip over the past few days but I am going to deem it an unreliable indication of where the market is going to go because much of those profit taking is due to end of year closing of positions and fund drawouts on very low volume. Today's big mover is definitely going to be the ISM index at 10:00 eastern (see stock market calendar). The ISM index, or Institute for Supply Management Manufacturing Index. This the first BIG economic indicator every month and is definitely the most important indicator released by the private sector. This index measures the health of the manufacturing sector and indirectly, the health of the economy. The ISM index is also known as the PMI or Purchasing Manager's Index. A higher PMI is bullish for the stock markets now in diminishing recessionary fears. This also mean that any market action before 10:00am today is largely unreliable.
On the technical front, the Dow continues to ride atop its 50WMA on the weekly charts, waiting for a breakout. With the long term bull trend strongly intact, it could be expected that a breakout to upside will happen especially with folks investing their remaining December bonuses.
Labels: fundamental analysis, ISM, technical analysis
posted by Jason Ng at 4:01 PM
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