WORLD STOCK
The Dow SPDR Trust Series
It seems the Dow Jones Industrial Average will not leave the headlines alone. It stands as I say and no one can dare prove me wrong, because they can’t. It is exactly as I mentioned it in my previous article on the Dow and that same thing exactly is what brought about about 50% of the September 2008-February 2009 avalanche, NOT any maneuver of putting massive stop-losses by Market Technicians or any other single investor or even the effect of the herd.
Granted that caused half of our woes, but their greed caused the start of the stocks falling down. But they hide, and the Congress and the Administrations, previous and present–continue to hide the incredible gnawing greed that caused the suffering of billions of people around the world. By selling-short, or selling what they have, in millions of share equity, they caused the panic–staying out of the bitter ending–and then, when they decided, they bought back slowly what they sold, quietly so no one will hear of it.
At any rate, third is the Exchange Traded Fund of the Stock Index called D.J.I, or the Dow Jones Industrial Average Index. This E.T.F tracks the DOW 30 and gives traders an opportunity to buy a priced version on this index that is otherwise not trade-able. The Monthly Chart shows how my OBV–EMA,3,-1 trading method shows a clear long-term buy signal, plus the RSI is in a good buying position, and the Daily Chart with the same method used has, at the lowest point technically correct come to a buying position.
This is the way the Monthly Chart looks:
This is the way the Daily Chart looks:
Share and Enjoy
When not to take position
Again we have the friendly QQQQ Powershares Trust. One I was hoping to show you as an excellent BUY not long ago. But I was skeptical about it, being that it was then too close to the s/r (support/resistance) line to make much of a percentage profit from. Being it IS an ETF, and a most favorite ETF among investors, lets examine it. QQQQ basically follows the NASDAQ Composite Index, known as the “High Technology” index. This was once true but it has become in recent years less and less accurate for this group of equities. Nowadays you see MICROSOFT and IBM on the Blue Chip Dow Jones Industrial Average, and relatively small “regular tech” companies, many outside the U.S., high up in the NASDAQ Composite.
The similarities between the QQQQ and the one he’s following are, by nature, very strong. The NASDAQ seems to be on a roll as are the major stocks in it. Namely, and still number one, are the HIGH-TECH equities. The strong drive of Intel that created a new generation of chips and motherboards for the Computer industry this year coupled with the advent of Windows 7 and the big software deluge we have seen recently all “specifically designed for Windows 7″ , or “Works on Windows 7″ has led a technological revolution of sorts and is making—lo and behold—NASDAQ go up even when the S&P 500 was off somewhat.
But it seems now that there is no chance today–March 24, 2010 for anything worthwhile to come up from this. But this is a good ETF with a strong track record and a very strong father. Nevertheless check out seriously the possibilities of a strong flight upwards next week or even later this week for this equity, after it breaks, and it should break, the relatively strong resistance. Maybe for the solid and long-term investor this should be a strong buy when it passes the 2410 level for the NASDAQ or the 48.60 level for the QQQQ ETF.
This is the way the Chart of QQQQ looks:
And this is the way the Chart looks for NASDAQ:
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Four Q’s Showing a Famous Pattern
This Chart I am showing below , and when do I not show a chart below, shows clearly a classical pattern in technical analysis which you will find often enough if you can discern it. It is a Cup and Handle pattern. As the name implies, it is the act of the price line which forms a cup shape then, getting at the s/r (support/resistance) line that started the cup, makes a very small cup, relatively, that really could be a handle to that cup shape. When and only when that pattern is complete and the price breaks the major s/r line (pattern break), then one can invest with some certainty and analytic philosophy behind him. This is the chart I am showing now of the QQQQ Powershares, a NASDAQ ETF. It should be self-explanatory.
This is the way the Chart looks:
