It was a strong week in the markets, all over the world. Here is a graphic that will show you how well everyone did. It comes from FT.
So, while things are looking better, let's look at a chart of what's happening on the Dow Jones Industrial Average.
Dow's Down-trend Is Still Clear.
May and June were volatile months for the stock market. The Dow moved within a 1400 point range in May and an 800 point range in June. Over the last seven days, the Dow moved from 10136 to 9614 and back to 10136. Basically, we saw two 500 point swings in seven trading days.
The Dow's daily Rate-of-Change is shown int the indicator below the main chart,. It illustrates another form of volatility. Moves outside of the -2% to 2% range (marked by the blue line) were rare
from August to April. Notice how the Rate-of-Change dipped above 2% and below 2% numerous times since early May (marked by the pink highlight).
On the price chart, a falling wedge is taking shape. According to Arthur
Hill, these patterns sometimes denote a correction within a bigger
uptrend. However, they are clearly bearish as long as they fall. In
other words, the trend is down as long as the wedge falls. The Dow needs
to clear the April trend-line first, and then the June high, to reverse
Business Posts Moving the
Markets that I Found Interesting This Week:
- Did Dykstra Secretly Sell Access to Cramer & Stock Endorsements
on TheStreet? (TDB)
- For Small Companies, the Credit Crunch Hasn't Gone Away. Here's Why.
- The Pendulum Swings Toward Austerity. Goodbye Big Government? (NYTimes)
- Greece Starts Putting Island Land Up For Sale to Save Economy. (Guardian)
- Rewriting the Rules of Wall Street: a Good Start to Financial
- More Posts
Moving the Markets.
Lighter Ideas and
that I Found Interesting This Week
- The Male "Pill": 100% Effective & Only Four Pills Per Year. (Newser)
- Kindle Economics: E-Readers Are Looking More Like Razors &
- Idea Incubators Go to College to Launch Entrepreneurial Ventures. (NYTimes)
- The Ten Most Disturbing Scientific Discoveries. (Smithsonian)
- Pretty Funny – The 100 Greatest Movie Insults of All Time. (SomeECards)
Posts with Lighter Ideas and Fun Links.