Bear Trend Continues Despite Better Jobless Claims
The Dow continued downwards by 74 points today eventhough Jobless Claims surprised positively as gloom sets in on the US Market.
Fundamentals
Jobless claims surprised positively today, turning in a 473K which is lower than the consensus range of 475K to 510K. However, it does take more than one good week to reverse the worsening trend in the jobless claims that have been observed all year. This is also why investors sold into the early strength and reallocated into the already deeply depressed bonds yield.
Technicals
The Dow continued its way down to the 10,000 points zone as the bear trend continues. If the 10,000 points level is broken, the market will laspe into an intermediate neutral trend with support at the 9700 level. Failing which, the market will fall into an intermediate bear trend. As the saying goes, there is no such thing as a triple bottom. If the market make a new low here, we can be sure that the odds favor lower lows rather than a reversal. At this point, there is no indications of strength at this critical area and I am more convinced that the intermediate bull trend is dying and that the market is in real danger of going back into an intermediate bear trend.
So, are we still able to profit from such a volatile market without sweating? Yes, if you use a volatile multidirectional trading method such as my Ride The Flow System which has made about 5% this month so far without watching the market or breaking out in cold sweat.
Fundamentals
Jobless claims surprised positively today, turning in a 473K which is lower than the consensus range of 475K to 510K. However, it does take more than one good week to reverse the worsening trend in the jobless claims that have been observed all year. This is also why investors sold into the early strength and reallocated into the already deeply depressed bonds yield.
Technicals
The Dow continued its way down to the 10,000 points zone as the bear trend continues. If the 10,000 points level is broken, the market will laspe into an intermediate neutral trend with support at the 9700 level. Failing which, the market will fall into an intermediate bear trend. As the saying goes, there is no such thing as a triple bottom. If the market make a new low here, we can be sure that the odds favor lower lows rather than a reversal. At this point, there is no indications of strength at this critical area and I am more convinced that the intermediate bull trend is dying and that the market is in real danger of going back into an intermediate bear trend.
So, are we still able to profit from such a volatile market without sweating? Yes, if you use a volatile multidirectional trading method such as my Ride The Flow System which has made about 5% this month so far without watching the market or breaking out in cold sweat.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 11:36 PM
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