The Golden Sunrise – Wednesday, March 31, 2010
The essential morning read for investors!
The stodgy Dow-Jones Industrials (name now a bit of a stretch)
New 52 week high, yesterday..
The DJIA now a strategic flight to safety?
- The Dow moved up 600 points in the month of March
- Low 10,326 on March 1st, high yesterday at 10,940
- One more day to track
- IBD accumulation/distribution scores started at E (it’s lowest grade) as the month began to as high as a full D on March 17th and is now a lowly D-
- The low volume for the month of March bears out the D- score
- The Dow has been up 18 of 22 trading this month
- The Dow hit 9904 on February 8th and has move up 1000 points in two months..and Feb is supposed to be a bad month, March not that great and April coming up is generally very,very good
- The Dow is yielding 2.57% which is pretty high in today’s environment relative to risk
- Highly liquid stocks
- Have been inversely correlated with dollar as so many of the behemoths that make up the 30 earn much of their profit internationally but had a great March while the dollar rallied
- These are very well-managed, sophisticated companies
Yesterday’s star in the DJIA was 3M, up 3.5%..monster volume spike!
A little old lady was marching up and down the halls of our local mall with a placard warning everyone the market was overbought but she liked that MACD on MMM.
Point is everyone is expecting some kind of retreat in share prices and has for weeks…see Williams on DJ chart above..more to the point, a correction of any size for a couple of weeks would provide a foundation for whatever is going to happen next.
There are no answers-power resides in questions which allow us the flexibility to adapt and change-might be a good attribute to possess in the coming weeks.
My daily posts and a lot more at goldensurveyor.com
Best wishes,
JohnR
Golden Sunrise is the Golden Surveyor’s broad-based market and world view. Written daily 4am-7am by markets information specialist GS John.
