Market Comment

Where is the Support Line for the Dow Jones

by Thomas Mullooly on May 4, 2012

In this video, we take a look at the POWER of support lines. Support lines often act like brick walls, meaning we tend to get a bounce off a support line. And it takes a LOT to break a support line. Here the Dow Jones is approaching the short term support line at 12850. A break would generate a second sell signal in the near term, and also put the Dow Jones closer to a potential spread quadruple bottom at 12700.

Again, it takes a lot to break a support line. This support line has been intact going back to last year. It’s also interesting to note this chart of the Dow Jones Industrial Average has been negative for eleven weeks now, significantly longer than average. The average weekly momentum in either direction, positive or negative is typically six to eight weeks. In these kinds of settings, we usually experience a bounce. But with markets conditions defensive at the moment, we need to be prepared for both negative market conditions and positive market conditions.

Be prepared one way or the other. And call us at 732-223-9000 if you have questions!

If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

If You Found This Article Helpful, We Have A Free Report We’d Like To Share With You:

3 Questions You Should Ask Your Money Manager TODAY. 

(simply include your name and email to get the report,
along with market updates from Mullooly Asset Management)

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Are Interest Rates Really On Hold?

by Thomas Mullooly on April 29, 2012

The Federal Reserve has announced they are “on-hold” through next year, and likely well into 2014. Does that mean interest rates will stay low that entire time?
Maybe not.

The “bond market” will actually do a “daily” job of setting rates. The bond market helps to balance the supply and demand of buyers and sellers of bonds and all things fixed income. But, like stocks, anything with a number can be plotted on a point and figure chart. The patterns that emerge really tell a different story about interest rates.

Remember, when rates rise, the VALUE (price) of your existing bonds FALL.
When rates (yields) FALL, the value of your bonds RISE.
There is a direct inverse relationship between interest rates and bond yields. If one side goes up, the other side goes down, much like a see-saw.

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.

If You Found This Article Helpful, We Have A Free Report We’d Like To Share With You:

3 Questions You Should Ask Your Money Manager TODAY. 

(simply include your name and email to get the report,
along with market updates from Mullooly Asset Management)

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April 16 2012 Update

April 16, 2012

I was so focused on getting to the market update in the video, I completely overlooked the very FIRST chart in the video (scroll down for the video below)! The chart (below) is the VIX Index as of April 16, 2012. You can click it to enlarge it. The “VIX” is the volatility index, sometimes [...]

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Bull market behavior vs. Bear market Behavior

April 10, 2012

Big differences in the market depends on whether the backdrop is bullish or bearish. Take a look: If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions. If you do not have an investment adviser, we [...]

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2012: First Quarter Roundup

April 3, 2012

The First Quarter 2012 started with a bang – the market was up approximately 200 points on the first day of trading, and never looked back. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will [...]

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Is Biotech The Next Sector To Make A Move?

March 30, 2012

With the stock market at overbought levels, finding the right sector to put money to work becomes more important than ever. With this in mind, we look at what happened with homebuilders, and how that sector moved from an average market performer, to an over achieving sector. We noticed that the bullish percent index for [...]

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Are the Financials Rising From The Dead?

March 19, 2012

On a point and figure basis, are Financial stocks — and possibly the entire financial sector — the modern day Lazarus, rising from the dead? This entire sector of stocks has been left for dead by the side of the road for well over three years. But their recent action is making us pay attention. [...]

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Here’s Why Financial Companies Might Be Rising From The Dead

March 19, 2012

In this podcast, we take a look at how (and why) financial companies may be rising from the dead. The stocks in the financial sector have been comatose for several years! This is important because the financial sector is one of the largest sectors in the S&P 500 Index of companies. The market is scaling [...]

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This High School Concept Can Help You Invest Smarter

March 12, 2012

It’s true: Understanding the Bell Curve Can Help You Invest Smarter I will stress again: there seem to be a LOT of people in the investment business who want to complicate the investment process. It does not need to be overly-complicated. This is part II of the lesson on bell-curves and how they can help [...]

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An Idea Learned in High School Can Make You A Better Investor

March 5, 2012

It really IS true: An Idea Learned in High School Can Actually Help You Make Better Investment Decisions Yes, some of the concepts discussed way back in high school CAN make us better investors. But there seem to be a LOT of people in the investment business who want to complicate the investment process.  If [...]

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