Today, most of the DOW stocks rallied. However, their charts show that it was a reluctant rally. Investors sold their shares when the DOW stocks rose.
Yet, the DOW was able to hold its gains.
Bank Of America Corp stock graph showed another bearish spinning top, suggesting that the rally is exhausted.
However, there are still bullish signs in the market. Tomorrow, there is no economic news. So the coast is clear for stocks to continue its rally. We shall us the DOW chart to guide us for tomorrow.
On the DOW daily chart, we can see a solid BULL candle called the bullish marubozu. The good thing about this marubozu is that it closed higher than all the previous candles.
Notice that the close that was higher than this marubozu was the first day of the sell off on the 21st of January. What does this mean to us? Traders are bullish that this rally is not a correction or rather a bear rally. This is indeed a real rally. And it is possible that the DOW may make new highs to perhaps 11000.
I have drawn 2 scenarios. The first one is the rally, the second one is the unlikely double dip. Do you really want to believe in the double dip theory??? Ask yourself. How is our economy doing? Manufacturing index has showed expansion for 12 consecutive months. The unemployment claims might have gone up to 496000, but it is due to the back log caused by the storm.
Are you going to allow those disdainful Wall Street Bankers to cheat you and steal your cheap shares?
The decision is yours.
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