InvestingFreak » Jones

Is Dow Jones ready to recover?

Sat, 19 Jul 2008 04:08:04 +0000

Almost a Month ago I wrote a post about how the dow had yet to bottom. See: The Dow Jones Industrial Index has not yet bottomed ,at that time the index was at 11,842. A week later I followed up with a prediction that the Dow Jones Industrial would bottom at 10,800 (See:Prediction: Dow Jones Industrial bottoms at 10,800.)

On July 15,2008 the Dow Jones Index fell to 10,827 to make a new 52-week low. That new low came very close to my prediction and soon after it began rebounding. Since the weekend came and I found some time to go and revisit the chart for the dow I now think that the index has bottomed out and should begin to climb.

I believe the market will begin recovering because of a few reasons.
1. 10,800 is a very strong support zone going back to 2006
2. Oil prices have recently fallen from $146 to $128 (maybe that bubble is deflating)
3. The chart shows that the sellers are moving out and more buyers are beginning to take over (green and red lines almost crossing. Green is buyers, red is sellers)
4. At the end of the chart is the amount of money being put in the market. Since mid May it was in a downtrend which meant people were taking money out of the market and now it has broken out of the trend.

As you will see in the chart below however, today’s action is within the downturn trend line and it needs to close above 11,500 or we might not have hit recovery period just yet.

Without further adieu i present to you… the Dow Jones Industrial Recovery Chart.

At this point i have invested in stock symbol (DDM) which has the top 30 Dow Jones Companies.
It goes mostly parallel to the Dow Jones Industrial Index. You can check out my current holdings at my Covestor page.
If you have any comments feel free to post them.

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Prediction: Dow Jones Industrial bottoms at 10,800

Mon, 30 Jun 2008 14:30:20 +0000

From the way the market has been swinging lately even with any recovery time, the dow jones industrial has yet to bottom a week after i wrote about how it had not bottomed. Over 500 points down later i still think the dow jones industrial has a long ways to go (with some rallies in between obviously). I feel like I am too optimistic by calling a bottom at 10,800 because if President Bush and his best friend Dick Cheney start a war in Iran my bottom call will look stupid.

And here is an updated chart.

The Dow Jones Industrial Index has not yet bottomed.

Mon, 23 Jun 2008 03:28:03 +0000

The Dow Jones Industrial Average doesn’t appear to have bottomed out as of today.
The news that are coming are still not good and the technical chart all points to even lower market soon.