Stock Market Analysis

Tuesday, March 13, 2012

Dow Breaks Out!!

The Dow made the biggest gain of 2012 today, rising 217 points on positive Fed statement.

Fundamentals
2012 continues its bullish surprises today as investors jumped back into equities big time on the positive economic outlook in today's Fed announcement. Bond yields jumped upwards across the board as investors rushed out of bonds and into stocks. Options traders also took total equities put call ratio down below 0.9 for the first time in a while. Today also marks the biggest single day gain of 2012 and is especially significant on the technical side of the story. 2012 has been about the US economic recovery so far and to support today's Fed statement, all sales indicators also turned in positive as consumerism picks up in the States. http://www.blogger.com/img/blank.gif

Technicals

As I have expected two days ago in my comment that "the Dow now has a real chance at breaking the 13,000 points level", the Dow made a decisive breakout today, climbing back up to the early 2008 levels! Today's breakout would form the support needed for the Dow to continue this incredible bull trend even though it has also taken the Dow into short term overbought condition and it would not be surprising to see a few sideways or slightly negative days from tomorrow onwards as investors and traders take short term profit off the table. Also, a retest of the 13,000 points level would also be possible in order for the market to solidify the 13,000 points level as its new support level. For now, my stock options picks subscribers and me are totally enjoying the profits especially on our existing trade in ROK which is now up 50%! Check out my Master's Stock Options Picks service now!

For now, the Dow turned all out bull trend.

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