Best Financial Markets Analysis Article The upward pulse of the bull trend that commenced in March of 2009 continues to forge ahead with considerable power. Both the Dow Transports and the Dow Industrials gave new buy confirmation signals last week. That this happened in the middle of an earnings season is most encouraging. Thus it would appear that the probability of the Industrials hitting the 14,000 level without significant difficulty is high, allowing for the odd pullback.

I have advised momentum clients to watch the Direxion ETF’s in the Real Estate and Technology arenas. These particular ETF’s give “triple bang for the buck”. I favour ETF’s for this type of trade because it removes a lot of company specific risk and allows one concentrate on market trend. Once you get your entry position right the key is to stay with the trend until you get a technical setback. The Direxion Real Estate vehicle is up 50 % since early March the Technology Direxion Unit is up 60 % since February. Not bad. Not bad at all.

I am glad the dog days of 2008 are finally over. But this is not a time for complacency as there is a lot of ground to be made up. I did not make a single trade in 2008 due to the technical collapse of the market in November of 2007. And while 2009 has been spectacular who knows how long this bull trend will last.

A lot of people have sent me emails concerning Goldman Sachs. While the ongoing fraud investigation will affect Goldman I do not believe it will adversely derail the current bull trend in banks. In fact if the financials pull back in sympathy I recently told a colleague to see this rout of Goldman as an opportunity to allow accumulation for the next leg up. He specifically liked Citi Group (Ticker: C). I concurred. This stock could go all the way to 20 dollars over the next year, once the current panic clears.

By Christopher M. Quigley
B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley is 46 years of age and holds a Batchelor Degree in Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in San Francisco, California where he lived for 6 years. Now based in Dublin, Mr. Quigley actively trades utilising the principles set out in the modules above. This Wealthbuilder course has been developed over the last 9 years as a result of research, study, experience and successful application.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.