- The DJIA is now entering into a sideways trend (#3) with a ceiling at 31,000.
- The Nasdaq hit another all-time high, but momentum seems to be fading.
- Once, again there was plenty of action in a lot of speculative stocks.
- The stimulus package continues to be debated.
It is beginning to look like the DJIA is entering into a #3 sideways trend. It will either eventually break out to new all-time highs from here or start to roll over and begin a #4 downtrend. This seems to me to be the more likely scenario.
The market has come a long way since last March/April. We were all over it in getting all in at that time. You can go back to the time period and read my articles.
There is no doubt about it that the easy money has been made and now the going gets a lot tougher. I continue to see a rotation in the market taking place. The Agriculture commodities are on the receiving end right now. If you are going to use crops to both eat and make fuel (ethanol & biofuels), this creates a lot of demand.
I addition to this the demand from China is enormous. This brings up the debate: what is the better use of farmland, growing food or fuel?
The Nasdaq hit another all-time high today, but seems to losing some momentum.
I looked at almost 1,000 charts today. Here is what stood out to me:
Alternative Energy: BLNK, PLUG, FCEL, & BWEN
EVs-WKHS, RIDE, and FUV.
Agriculture-CORN, JJG, WEAT.
I can't wait to start all over again tomorrow looking for winners!
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