Market Open – Monday August 6, 2012

Friday Wrap-Up: Finally, after two big disappointing events, the third mega event of the week brought smiles on the faces of bulls. On Wednesday Federal Reserve decided to do nothing to address the sluggish growth. On Thursday, ECB said that it may do something but did not say when. So the markets were generally in…

Battle of Two Patterns

For the past few months, Dow Jones Industrial Average is not giving clear signals which direction it will go. This confusion is due to the uncertainty created by many current and future events around the world. European financial crisis is going strong and the policy makers are not able to devise a cohesive strategy to…

Market Action – July 25, 2012

The US equity markets had a mixed performance on Wednesday July 25, 2012. Tuesday was a big down day continuing the trend that started on last Friday. During this time the S&P 500 lost -2.78%. The global equity markets also did not fare well and Global Dow index (GDOW) lost more than -4.00%. Overnight’s global…

FT Says Death Of Equities

May 24, 2012 issue of Financial Times says ‘Death of Equities?’. It says no one wants stocks. The last time a major publication came out with a similar headline was Business Week on August 13, 1979. This is how Dow Jones Industrial Averages performed since then:

Dow’s Another Losing Streak

Today, May 18th, Dow made a down day, which was the 13th down day in the previous three weeks or 15 days. Since 1970 Dow has had such a losing streak only 24 times (excluding the current one). Out of these, 11 times Dow had a positive day next day and 14 times it went on to record another…

History Says Dow is Set For a Bounce

On May 9th Dow extended its losing streak to six days. History says that the probability of a bounce now is quite high – 79%. Since 1970, Dow has seen a losing streak of six days 58 times (excluding current streak). Of these, 43 times the streak went beyond six days. However, when Dow was above its 200-Day SMA its losing…