Dow Jones Industrial Index
August 28th, 2007 NW Teong
Please take a look at Dow Jones Industrial Index below:-
Courtesy of Yahoo Finance
It seems that the index has hit the roof of its down trend lines (i.e. you draw a line connecting the tops and another line connecting the bottoms). It is interesting to see if the index could pierce through this convincingly. My take is that it is not the time yet for Dow to break up convincingly at this moment baring unforeseen circumstances, and provided the interest rates remain unchanged. At least not during this week.
The next few days’ movement should be interesting to watch. Readers are reminded to watch the markets closely leading to 18 Sept when US Fed will decide on its interest rates policy during its FOMC meeting. One key thing to monitor during this period is of course the treasury yields, such as the yield of the 10-year treasury bonds. During this period of credit squeeze, it is also useful to watch out for the yield of treasury notes and bills which are of shorter duration (i.e. from 3 months to 2 years etc) This will tell you what Fed is likely to do with its interest rates policy.
Cheers!
Master “The Essence of Stock Investment” and ride towards the journey of your financial freedom!
Be the “Master of Your Own Destiny”!
Leave a Comment
Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>
Trackback this post | Subscribe to the comments via RSS Feed