Just a Sideways Day...
As expected, the Dow went sideways today following last Friday's surge, gaining a marginal 3.3 points or 0.03%. A few sideways or slightly negative days usually follow big single day surges due to profit taking.
The US market continues to be bullish as average trading volume continue to rise and short term momentum indicators making higher lows, supporting the rally.
Yes, the recovery in the US market really isn't as straight forward as the recovery we saw in the BRIC nations. After such a painful lesson, we saw that investors are taking profit in realistic amounts and not holding on for explosive profits like they used to do. Most investors are behaving more like traders as profits are taken off the table quickly, resulting in less than straight forward bull trends.
Well, there is no doubt that the world is walking out of this economic crisis and even though all of these takes some time more to translate into jobs in the economy, we can all be sure that investors are already pricing it all in right now.
For now, the Dow continues to be in all out bull trend.
The US market continues to be bullish as average trading volume continue to rise and short term momentum indicators making higher lows, supporting the rally.
Yes, the recovery in the US market really isn't as straight forward as the recovery we saw in the BRIC nations. After such a painful lesson, we saw that investors are taking profit in realistic amounts and not holding on for explosive profits like they used to do. Most investors are behaving more like traders as profits are taken off the table quickly, resulting in less than straight forward bull trends.
Well, there is no doubt that the world is walking out of this economic crisis and even though all of these takes some time more to translate into jobs in the economy, we can all be sure that investors are already pricing it all in right now.
For now, the Dow continues to be in all out bull trend.
posted by Jason Ng at 7:00 PM
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