Every talking head on the financial news networks are celebrating the new all time closing high on the Dow Jones Industrial Average (DJIA). Last week, the DJIA crossed above the 14,198.00 level that was last made in October 2007. Today, the DJIA is trading as high as 14,515.00 which would be another new closing high on the DJIA. Many analysts and Dow Theory followers are looking for much higher levels on the DJIA. So what are the problems with this rally if everyone is so bullish at this time?
Proprietary Analysis Playbook: 2013 The Year Of Profits For Members
What a difference one week makes! On Thursday's blog post my title was, "what a difference a day makes". In the headline driven market we find ourselves where fundamental and technical analysis count for little, the impending deflationary death spiral we were confronting early in the week melted away with one comment from ECB President Mario Draghi: "Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough." That last sentence sent global risk assets skyrocketing into the weekend.
Well, I was partially right about last week. The market gave us a three day rally but sold off into the weekend. However, my predictions regarding the Euro and the 126 level were dead wrong. Events in Europe are quickly coming to a head and the efforts of European politicians to "kick the can down the road" are coming to an end.
Most of the major indexes finished the week up marginally from the previous week. The notable exceptions were the Russell 2000 which underperformed it's large cap brothers and the Mid Cap index was also down close to 1/2 percent.
Weekend Video: Swing Trade Alerts, Market Calls & Proprietary Guidance
King Dollar Dominates, Crude Oil and Gold Continues the Free Fall
Energy futures are lower once again today on pessimism concerning the European recession as well as a slowdown in China causing crude oil prices in early trading in New York to be down another $.85 in the June contract trading at $96.22 a barrel also in sympathy with the stock market the rest the commodity markets all.......