The Closing Look
Stocks rallied on on Monday as the market added to last week’s gain. The Dow Jones Industrial Average traded above the middle of it’s double bottom pattern and the next level of resistance to watch is the declining 50 day moving average line (16,654). European and Asian equity markets also rallied on Monday after oil prices jumped 6%.
Gary’s Thoughts: Two words…BEYOND OVERBOUGHT….right at the 50 day for many of the indices. Our call for a low on Feb 11 and 12th in no way thought we would get this kind of move up…then again, you know what we say about bear market rallies. This time?
One man’s bear market rally is another’s bull market correction. Nobody can read beyond the right edge of any chart and everything to the left of the right edge is rear view mirror history. Beware of false prophets who speak of known market charateristics, the study of them, and claim of superior knowledge above the rest of the Wall Street crowd. Those that claim superior knowledge usually have a 2% annual stake in your portfolio in order to make you believe in their superior wisdom. Follow the wisdom of John Bogel and keep anyone from grabbing your sheckles.
Gary, the DJI weekly is looking like a head and shoulders pattern, what do you think? Maybe a move to 14,000 is in the cards? I guess we will wait and see…