DJIA

Yes, we are still in a rally, and the longer that we experience slow improvement over longer than monthly analytical periods; the less likely it is that the next correction will be as devastating as the last. But there absolutely will be another correction, and remember---

VIX Daily Sell Signal: This is the daily chart of the VIX. I added 2 standard deviation Bollinger Bands to the chart. One way the market produces a market sell signal is when the VIX closes beneath the lower band as it did on January 11, and then it “rallies” to close above the lower Bollinger Band line. This area is circled on the chart.

Once again The Wizards will attempt to debug the market cycle and create an upward only future for the masses. Try not to be abused again--- the markets aren't broken, just the market shakers. Your portfolio should be up in market value--- and not by just a little for the "dismal decade".

U.S. stocks soared Tuesday, sustained by better-than-projected earnings and improving outlooks, which lifted the Dow to its highest close in six months. There are still signs of distress among certain sectors however, like banking and retail, which depend on the financial health of consumers. Will the up-trend continue?

When General Motors filed for bankruptcy protection this past week, its 83-year tenure as a fixture within the Dow Jones Industrial Average also came to an end. Faced with the abrupt passing of an economic icon, the stock market rallied; a classic case of selling the rumor (fear of the unknown) and buying the news (increased knowledge of the future). This works in the reverse for good news.

Guess the next Dow component to be delisted and win $50: http://optionmaestro.blogspot.com/2009/05/dow-jones-industrial-average-c...

And the real crime is this: investors as naive as the wet-diapered E-Trade spokesbaby can push a button and buy operational hedge funds more bizarre and sophisticated than any ever imagined buy the rich and famous. If an ETF harbors a hedge fund, but doesn't call it a hedge fund, is it really not a hedge fund?

The bulls (and the shorts covering their positions) finally made a showing on Wall Street today. CNBC says that the reason for the bounce is that the Obama Administration announced its plan to provide relief to homeowners in distress as well as a stimulus plan being announced in China. That might not have hurt matters, but the real reason for the rally is that the market was extremely oversold.

At current levels the Dow is very near 50 percent retracement from all time highs. As any technicians will readily tell you, this is an important support level and if it breaks it more pain will ensue.

I read this fascinating study by Barclays Bank this morning on how the performance of the Dow in the month of January can set the tone for trading throughout the year. In the first month of 2009, the Dow Jones Industrial Average fell 12 percent. According to Barclay’s study...

A look at the historical performance of the Dow Jones industrial Average and how it might bode for those looking for a no muss, no fuss way to beating the broader markets in 2009.

Crash! The 2007 thru 2008 financial crisis halved 401(k), IRA, and Mutual Fund values in a matter of months. For many, retirement dates had to be pushed back; for others, new jobs had to be found. The tragic flaw? No income allocation in the investment program. Market value builds egos; income pays the bills.

This is my third iteration of an ongoing search for institutional buyers with a fundamental focus. They've been largely in cash for months now, and until they re-enter the markets, we're just not going higher.

Where is the Dow going? Knowing where we've been, and why, is the key to the answer. My answer - stocks are the cheapest in 50 years.

A chart of the Dow Jones Industrial Average showing the last 100 years of up and down markets, but over time it is always up...