Primary Bull Trend Commences...
The Dow confirmed a primary bull trend last week according to the Dow theory as it broke its June highs after a significant retreat, gaining 3.99%.
A primary bull trend is a long term trend which says that the next year or two would be higher than it is right now. It does not mean that the stock market is going to go up and up without looking back. In fact, the Dow is expected to retreat a little this week due to short term overbought sentiments and re-test the 200 days moving average, find support, before going higher. There are serious fundamental concerns still lingering in the world economy and such powerful rebound in the stock market world wide does cast a shadow of concern. Most of the world's GDP are driven by government spending right now and the real question is, how soon will all that translate into jobs for the people?
A primary bull trend is a long term trend which says that the next year or two would be higher than it is right now. It does not mean that the stock market is going to go up and up without looking back. In fact, the Dow is expected to retreat a little this week due to short term overbought sentiments and re-test the 200 days moving average, find support, before going higher. There are serious fundamental concerns still lingering in the world economy and such powerful rebound in the stock market world wide does cast a shadow of concern. Most of the world's GDP are driven by government spending right now and the real question is, how soon will all that translate into jobs for the people?
posted by Jason Ng at 4:07 PM
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