Market Outlook

[Investmethods]

The Dow closed up today 171 points. However, it would be wise to wait for a follow through to confirm the bullish action. In regards to economic developments, there is no real catalyst to push the market through major resistance levels established on 4/26/2010. Additionally, last week steep sell off has broken the short term moving average on more more than average volume. Because of last week sell off, previews support has now become resistance. If the market fails to break this level to the upside, a head and shoulder patten is likely to complete. In that case, it will suggest further downside for stocks - a big one. So, how do we protect our portfolios in case this happens? A solution would be to buy protective puts. Don't know how this works? Check out the tutorials on my

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[Investmethods]

It looks like the market may be struggling to break current resistance levels.One reason for this could be the usual light volume in trading that is experienced during the Holiday season. However, if the market fails to break these levels in the next few days, a head and shoulder pattern is likely to form. At this point, we should experience the beginning of a sell off in stocks. We'll see what happens.

[Investmethods]

The market is selling off today on news that "North Korea fired scores of artillery shells at a South Korean island." Looking at the chart, the picture doesn't look too pretty. If Market finish the day below current support, the possibility of further selling will increase. Possible next target is 10,750 for the Dow.

[Investmethods]

The market was stuck in a narrow range last week. With all the negativity surrounding the globe lately (North Korea, Ireland), there is a good probability that this range will brake to the downside. In the meantime, a good approach would be to get ready in case that happens. How? This article is a good start.

[Investmethods]

The Market rallied this morning more than 200 points and has hold its gains throughout the morning section. However, it is still stuck in a narrow range between 11,200 and 11,000. Until it brakes this range, there is no clear direction as to where it will go. If it fails to brake to the upside in the next couple of days, it will likely go back down to the 11,000 level. Since the MACD is starting to deep below the signal line, chances are that prices may brake to the downside signaling a new round of selling, perhaps to the 10,500 level. This could be a great opportunity to buy puts for portfolio protection. A tutorial on how to do that can be found at:

[Investmethods]

The market rebounded big time last week, thanks to a two-day 350-point rally on Wednesday and Thursday. Some people will argue that this is a strong bullish sign considering the reaction to the recent negative headlines. Although this is a valid argument, it is important to note an important fact during this market rally. Volume was mediocre and that is not good especially when the major indices are approaching major resistance levels.

[Investmethods]

It looks like the market is forming a double top pattern. If this pattern materializes, stocks will fall big time. By buying puts, you can protect your portfolio from a major disaster. Learn how to do this here:

[johnm]

Below is the excerpt from an interesting post on sunday from the website of Mahendra Sharma (mahendraprophecy.com),

Also told to buy some stocks.....and giving some huge discounts for the next 48 hours