|Sterling Weekly for the Week of December 28th, 2009
|Moving Sideways with a New Trading Channel.
Since the previous edition of the Sterling Weekly, the Dow Jones Industrial Average rose 48.60 points, or approximately 0.005%, to finish at 10,520.10 A recent theme to the Sterling Weekly has been where is the market going from here? I tend to believe the market is essentially going to be moving sideways for the time being. I have been publishing off and on the chart of the Dow Jones Industrial Average showing the trendlines as they have evolved that have been in place for approximately the last 16 months. As the chart below shows, it looks like sometime in November the Dow Jones Industrial Average broke below its lower trendline as been more or less tracking sideways since.
Since mid November it looks as if the Dow Jones Industrial Average has started a new trading channel as indicated by the trendlines on the chart below which the Dow has stayed within since then.
What does this mean for the market?? Well, for starters further upward gains may be much tougher to come by. Secondly there is an increased chance for a market pullback. Personally, I am looking for the market to track sideways until the start of the 1st full week of January. Then we shall see what happens.
Calendars for the Week of December 28th, 2009
||CaseShiller 20 City
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from Recent (20) Editions of the Prime
Close or Exit Price
|Rockwell Auto 'ROK'
||Sold on the 18th
|Murphy Oil 'MUR' short
||Covered on the 9th
|Southwestern Energy 'SWN' short
||Covered on the 9th
|Travelers Co. 'TRV' short
||Covered on the 18th
|Patriot Coal 'PCX'
|| Dec. 23
* Our December 10th recommendation of US. Steel 'X' @ $46.74/share, set a new yearly closing high of $56.86/share on December 24th for a gain of $10.12/share.
* Our November 19th short sale recommendation of JC Penny 'JCP' @ $29.15/share reached our stated target of $27.15/share on December 18th for a gain of $2.00/share.
* Our November 12th recommendation of Western Digital Corp. 'WDC' @ $38.53/share set a new yearly closing high of $44.64/share on December 24th for a gain of $6.11share.
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