Its been a minute since i’ve posted anything on the blog as this market bores the hell out of me. But as we’ve reached an important area on the dow i thought i should do an update on the good ol DJIA. Right now we’re closing in on a major support area around 7200 which was the lows of the DJIA in 2003, 7197 to be exact. This area in the low 7′s was also a significant area of support and resistance between 97-99. Yet below this area of support there’s really nothing , from a technical analysis point of view, that supports the bulls until around 4,000… which isn’t really that significant of support and is from the mid 90′s. But if we drop below 7 and don’t see a lot of buyers coming in then who knows maybe 4k is a possibility? Who the fuck knows if this new stimulus package will even work. And Obamas so called “new deal” to create millions of jobs by rebuilding bridges, roads, schools etc….. sure creating some new jobs is cool… but shitty manual labor jobs that will be paid for by the american tax payer? That sounds like re-circulation of the lack of money already out there don’t it?
But with all that said. Hopefully we do pull out of this mess, the stimulus works, and Obama does one helluva job at turning our economy around. Wouldn’t that be nice and carefree. Its just a matter of when? When will unemployment stop rising, consumer spending increase, housing market increase, credit become readily available, and when will the market bottom? I don’t have a damn clue no body else does either, they have educated guesses and opinions. Which doesn’t really account for anything at this point in the market. Analysts? You mean asshats. Stock Brokers? you mean Pot Smokers. Investment Banks? Do those exist anymore?
Technical Analysis of the Dow. Is the market about to spring back after leaning wayyyyyyyyyyy far back for the Limbo? Or is it gonna fall on its ass and break through this support area in the low 7′s.
January had some pretty dismal performance to say the least, it was the worst January in the stock markets history in fact with the Dow Jones Industrial Index collapsing nearly 9% to cap the month. Now in the face of another week of big earnings reports and economic news we’re bracing ourselves for another volatile week that will be manipulated by whatever shit for news is hitting the wire. With Headlines such as,”Wall Street Streaks higher As Blah blah Blah and Traders gain confidence in a bottom”. Followed by the next days headline ,”Stocks End Shartply lower On Slew of Bad Earnings and New Economic Worries”. The market is so flipped flopped these days and controlled by hype in the media and fear. Its a really interesting time to be part of this game we call “Stock Trading”, or whatever the hell you wanna call it. Best thing to do is stay conservative, downsize your trading positions, don’t place trades without confidence and stay away from the 1/2 ass trades. Such as … screw it im gonna trade it and see what happens.
Anyways comrades, get ready for another interesting week of earnings reports hitting the wires.
Technical analysis of the DOW: