A time to be nimble!
As I review the long, mid and short term trends of $DJI, everything I see in the charts tells me that the markets are moving higher, but in my mind I can’t accept it. Why is that? Is it the fact that most of the U.S. banks will need to raise more capital to survive? Is it that Chrysler is bankrupt and GM is on the verge of bankruptcy? Is it that the unemployment rate is at highest levels we have seen since the early 80’s? Or is that the earnings reports for most companies have been lackluster? You would assume that in light of all of this negative news, the stock market would be moving lower; yet it isn’t. The markets continue to push higher. In this market you must trust what you see in the charts and cut out the “noise”. Most importantly you must remain nimble in this market, because when you least expect it, you could be blindsided. Today brought another day of volatility, with the bulls leading the way to the finish line. The Dow ended the day up 101.63 points, to close at 8512.28. The S&P 500 ended the day up 15.73 points, closing at 919.53. Although the NASDAQ spent most of the day in the negative, it did manage to finish the day up 4.98 points, to close at 1759.10.
