Dow Jones Stock Market Forecast
Dow Jones Performance - Monday December 17th, 2018
Tuesday December 18th, 2018
Tomorrow will be a good day for day trading. Buy on the insiders closing their short positions and then sell when they begin to reload their short positions for another takedown later in the week. Or next week (oh no, not Christmas!).
Ignore The Up/Down Value
It doesn't matter that the Dow Jones lost another 507 points today. In relative terms, this is just a 2% decline in the Big Board index.
Percentage moves are all that matter. In any given trading day. Trading week. Trading month. Trading year.
Where Is That Bear?
Anyone telling you the market has turned from bull to bear is literally giving you bullshit.
A bear market does not even begin until it has dropped a minimum of 20%.
The Dow Jones hit its all-time high October 3rd, 2018 at 26,828.39. In the 50 trading days that have followed, it is now 12% off that all-time high.
Some would argue a bear market would be official when the Dow Jones closes at or below 21,462.71. They would be wrong.
Move That Average!
The medium and long-term moving average indicators used by the big boys on Wall Street are the 50-day, 100-day, and 200-day moving averages.
As you can see, today's market close was right on the 100-day moving average. Normally, the NYSE specialists and Nasdaq market makers will take the market back above the 50-day moving average. Which is just over 25,000 at the moment.
But this isn't about their moves this week. It is in the next several weeks that will be of interest. The 200-day moving average currently sits at 20,674.49. The market must close below the 200-day moving average in order to be in a bear market.
Which is awfully close to 20,000. And the Wall Street insiders will do whatever it takes to make sure the Dow Jones stays above it.
It's a psychological thing.
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