I was just reading RS of Houston who if you don't know is a popular trader who publishes a newsletter. He said in his letter that "...this afternoon's sharp reversal was right on schedule and we view see this as confirmation of the beginning of a very nice correction."
Well, I beg to differ, my analysis tells me that we should be headed a little bit higher before any sort of pullback. As a matter of fact I see the Dow Jones Industrial Average going to around 10,255 by October 30.
As of this date the Dow has closed at 10,081.
I guess we'll see what's what and who's how in the next week or so.
Thursday, October 22, 2009
Saturday, October 3, 2009
3rd Quarter Recap 2009
The market has closed the week on a down note with the Dow posting a high of 9834.
This week marks the 2nd straight week of drawdown in the Dow. However, I still believe the 8877 area is still very strong support and the market is trading well above its 200 day moving average.
We have advanced some 3400 points in the Dow since the bottom in March and approximately 1100 points of that is what we have captured since we started to DCA back in.
If the market is going to challenge that support level of 8877 we should know by the 3rd week in October. Outside of that my analysis shows a run up to about 10,500.
So I am going to continue to DCA into the total stock market.
This week marks the 2nd straight week of drawdown in the Dow. However, I still believe the 8877 area is still very strong support and the market is trading well above its 200 day moving average.
We have advanced some 3400 points in the Dow since the bottom in March and approximately 1100 points of that is what we have captured since we started to DCA back in.
If the market is going to challenge that support level of 8877 we should know by the 3rd week in October. Outside of that my analysis shows a run up to about 10,500.
So I am going to continue to DCA into the total stock market.
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