Can Trump Drive the Dow Jones (INDEXDJX:.DJI) to 50,000

Can Trump Drive the Dow Jones (INDEXDJX:.DJI) to 50,000

Can Trump Drive the Dow Jones (INDEXDJX:.DJI) to 50,000

Trump’s tax plan has already been a hit with Apple and the success will continue, not only will direct jobs but the flow on effect will be enormous, enough to propel the Dow 50,000.

The technical support the idea on the monthly charts.

DJ INDU AVERAGE closed up 1,395.010 at 26,114.230. Volume was 39% above average (neutral) and Bollinger Bands were 148% wider than normal.

Open High Low Close Volume___
24,809.35026,153.42024,741.69926,114.2304,487,136,256

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 22,802.61 18,689.52 13,010.09
Volatility: 31 56 77
Volume: 6,299,825,152 3,291,071,488 4,330,710,016

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DJ INDU AVERAGE is currently 100.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume into .DJI (bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 17 periods. Our momentum oscillator is currently indicating that .DJI is currently in an overbought condition.

Momentum

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 97.6643. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 89.88. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 34 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 178.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 15 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support.

Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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2 Responses to "Can Trump Drive the Dow Jones (INDEXDJX:.DJI) to 50,000"

  1. Peter Talbot   April 4, 2018 at 10:11 am

    The US indices are oversold by more than 35% and the bottom is a long way down. This kind of boosterism is great for the suckers: pack em in! I need to take their money.

    • Paul Ebeling   April 9, 2018 at 7:16 am

      Once the move from the election is consolidated, the bottom, the next Bull leg has room to mark 30,000 DJIA. Will then look again. All the best, Peter. Paul

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