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Trading Lessons

Stock Market Update, Dow, Transports and Telefonica

Stock-Markets / Stock Markets 2010 Aug 07, 2010 - 03:43 PM GMT

By: Christopher_Quigley

Stock-Markets

Best Financial Markets Analysis ArticleIn our last communication in July to clients we pointed out that there was a possible significant bullish trend change approaching in the market. The key Dow Theory technical levels we identified were 4400 on the Transports and 10500 on the Industrials. As is by magic the market has remained “stuck” around these levels over the last 10 days. This “line” in market action is good because, as I never fail to mention to students, the longer such a line persists the more significant the potential market move on “breakout”.


For momentum players my trade of preference remains the Direxion Emerging Markets ETF: “EDC”. My technical buy level last brief was a breakout from 24 dollars. So far it is up 25% which is excellent. It is hovering at nearly 30 dollars at the moment in sync with the market. It remains a hold until the market indicates otherwise.

On the value side there have been some excellent buys over the last few months: (MON, APA, AAP, BX, NE, DB, BTI, and my favourite TEF which bottomed at 54 dollars and is now at the 70 dollar level). Again they remain as buys until our technical signals says otherwise.

The charts below are courtesy of StockCharts.Com

Dow Industrials Index:

Dow Transports Index:


Telefonica:

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.

© 2010 Copyright Christopher M. Quigley - All Rights Reserved

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

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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