Stock Market Analysis

Tuesday, October 20, 2009

Dow Retreats As Expected...

The Dow retreated slightly by 50 points today as the 10,000 points blackhole continue to exert its gravity on the market.

Yes, expect the market to continue to be technical driven as traders and investors struggle to decide if other traders think its time for the market to move from recession mode into growth mode. Nobody wants to be the fool holding on to a short term pullback especially when its so obvious. This is why short term bearish momentum continue to rise today as the Dow retreats from short term overbought condition. In fact, I won't be surprised to see the Dow actually break lower than 10,000 points this week to muster some strength at its 30MA level. However, make no mistake about it, the Dow is going to eventually break the 10,000 points barrier cleanly and if you have holding power and is not concerned about short term volatility, then all you have to do is to wait for it to happen patiently.

For now, the Dow remains in all out bull trend.

See how I made 52% profit with call options on CREE yesterday in this toppy market!

Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!


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