Welcome Back From The Long Weekend!
Welcome back from the long weekend!
With the President Day long weekend and Chinese new year behind us now, the US market is now ready to carry on with business as usual at last. As we come to the close of this earnings season, we continue to see the US market trade in a fashion that defies fundamentals. The Dow closed higher by 53 points despite worse than expected housing market index even though the iShares Dow Jones US Home Construction ETF closed significantly lower.
Indeed, the US market has displayed incredible resilience against the recent worse than expected economic data and continues to persist higher despite a general sense of being short term overbought. Truly, as the old saying goes, the market can remain irrational for longer than you can remain liquid. This market condition has made it extremely tricky to enter into short term trades of either direction, which is why my Star Trading System has opted to stay on the sideways through this period of time.
The heavyweight economic data this week would be the leading indicators on Thursday along with the jobless claims.
For now, the Dow remains in short term neutral trend within an intermediate and primary bull trend.
With the President Day long weekend and Chinese new year behind us now, the US market is now ready to carry on with business as usual at last. As we come to the close of this earnings season, we continue to see the US market trade in a fashion that defies fundamentals. The Dow closed higher by 53 points despite worse than expected housing market index even though the iShares Dow Jones US Home Construction ETF closed significantly lower.
Indeed, the US market has displayed incredible resilience against the recent worse than expected economic data and continues to persist higher despite a general sense of being short term overbought. Truly, as the old saying goes, the market can remain irrational for longer than you can remain liquid. This market condition has made it extremely tricky to enter into short term trades of either direction, which is why my Star Trading System has opted to stay on the sideways through this period of time.
The heavyweight economic data this week would be the leading indicators on Thursday along with the jobless claims.
For now, the Dow remains in short term neutral trend within an intermediate and primary bull trend.
posted by Jason Ng at 5:17 PM
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