The Dow continues unabated in its uptrend treading alongside a perfect 45 degree line, since Feb 1st and with a tiny correction the Dow went from 14009.79 to 14578.74 at close on March 28, for a superb 4% gain in two months.
The Dow gave again a buying signal last Thursday with a 14880 target, the support line for this week is at 14349, the index must lose 1.60% from last week close to signal an end to the uptrend, any closing price this week below 14349 is a signal to exit all Dow Longs.
I suspect this continuous uptrend of the Dow since not all the groups are trading alongside, Basic Materials had a dismal performance in the same period going from 290.09 on Feb 1st to 282.92 at last week close, shedding 7.17 points or 2.47%.
The group gave a short signal on March 25 with a 1.3% target to the downside, March 27 low could be the target so I am not shorting the group, possibly it will overcome its 50 ma halting the down move for a while. This is a weak group making it a favorite short candidate if the market starts consolidating. The 285 level, extremely close the 50 ma is resistance for downs next week.
Positions: In the sidelines.
Good luck to all,
- ▼ 2013 (13)
- ► 2012 (48)
- ► 2011 (29)
- ► 2010 (24)