It was a choppy earnings season but despite its volatility the bull trend remains very much intact. The Dow Transports and Dow Industrials both are trending upward with higher highs and higher lows and both indices are in congruence.
Despite the recent market pullback Dow Theory divergence continues as can be readily observed from the Dow indices comparison chart below. Divergence is an indication of market instability and investor uncertainty.
For the last 10 trading days (two calendar weeks) the Dow Industrials have been trapped in a tight trading range. In Dow Theory parlance this is called a “line”. The longer this line progresses the more technically significant the breakout trend will be for savvy traders to exploit.
The issue of successful stock market investment affects us all. Even if we are not directly engaged in the industry, all of us will need some form of pension to fund our retirement. Whether we like it or not most of our retirement funds will find their way into the financial markets.
You might think following Angela Merkel’s electoral success last month all was stable in Euroland; unfortunately, nothing could be further from the truth. I have it from reliable sources that Euros continue to flood out of Europe...
Ireland’s presidency of the European Union ended last Friday. One of its last acts was to finalize the banking policy whereby future troubled Euro banks will be restructured using the Cypriot “bail-in” model.
Late last month one of the most important speeches on Europe ever made by a British Prime was presented by David Cameron to a central London audience at an event hosted by Bloomberg. The speech sent shock-waves throughout the European establishment. Salient excerpts are quoted below courtesy of “The Independent.co.uk”.
Ireland took over the presidency of the European Union on January 2013 for six months. Prime Minister Enda Kenny is thus in a unique position to try to find a solution to the banking crisis that has bedeviled Ireland since 2008.
The stock market had been basically playing a game of wait and see since the American presidential election but now the momentum is moving with the bulls. By all accounts the positive mood should continue notwithstanding any shock from Congress and the budgetary negotiators from the Whitehouse.