Charts courtesy of www.realtimestockquote.com and www.chartoftheday.com
It ain't over 'til its over. This past week saw the Dow Jones Industrial Average reach and close above the seemingly magical 10,000 level. Only seven months ago this level seemed gone forever with focus on Dow crashing to 5000. Now the "experts" are telling everyone that we should "buy the dips" because this market may move higher. If you are a regular Marketdoc Report reader you (should) have ridden this market to its new 2009 high without much surprise. While the rest of the market "gurus" are looking at lagging indicators like unemployment, we have talked for several MONTHS how this economy is in recovery mode and the market tends to anticipate this.
Make no mistake. Many crosscurrents continue to jostle this market. One of the big "unknowns" has to do with the potential socialization of our health care system. The could have HUGE negative ramifications for the stock market and overall economy as employers may be forced to participate in the "public option." As this debate continues, keep something in mind: Access to a healthcare waiting list is not the same as access to good healthcare! The people who need healthcare the most today (the chronically ill) will be the last ones to receive it under a "public option." The sabre rattling in the Middle East is the other wild card.
Both charts above show there is still some room left to the upside, but not much. Our technical forecast has placed the Dow somewhere near 10,200. As we see more of a topping pattern it will be the perfect place to buy some puts against those positions which have risen skyward since March in order to protect gains. Stay tuned.
Note: The above is for information purposes only. Any decision to buy, sell, or hold a specific investment for a portfilio should be discussed with your own personal investment advisor.
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