Market Update : DJIA & NASDAQ

Dow Jones Industrial Average DJIA
R - 10,800
S - 10,270

We effectively reached our support line for the DJIA at 10,270. The question is whether it will hold. It was a tumultuous week with the bulls and bears battling it out and we have essentially reached a stalemate unless either side comes out fighting. The one thing going into March that will benefit the bulls will be quarter-end window dressing. I would like to show my customers I am up for the year, wouldn't you?


NASDAQ Composite Index COMP
R - 2,340
S - 2,120

NASDAQ was looking stronger than the DJIA by the end of the week, still it was a tough battle. The index is well away from the support line and clearly the bulls are out there the past two weeks pushing higher, but caution should be taken given the weaker finish on Friday despite being positive.

Market Update : DJIA & NASDAQ

Dow Jones Industrial Average DJIA
R - 10,800
S - 10,270

The move from the Jan 19 close 10,725 to the bottom reached Feb 8 9,908 represents over a 800 point move or 8% which is a decent move and can be considered a correction from which we can now expect a resumption of the short term trend up.

After breaking the upward channel Jan 22 a month ago, the DJIA has now returned to that level and will need to support itself beyond 10,500 to test the resistance level 10,800 that it failed to break last month. Otherwise if we see a move south, then we will need to see 10,270 hold which is approximately the 50 day MA. This level is watched by institutional investors and like the game of chicken, the guy who moves first will move the market down or up depending on which direction they want to break.

I'd like to see two more days above 10,400 to be convinced to stay long. To add to the comment made previously at or up to 10,500 we may see a heck of a fight. The winds are in our favor, but will we have the manpower to push forward?


NASDAQ Composite Index COMP
R - 2,340
S - 2,120

For the NASDAQ, Jan 19 close 2,320 to Feb 8 close 2,126 was almost 200 points or 8%. Again we can consider this for the short term a correction and expect a short term resumption of the trend up.

Stock Update: DOW

Sat Feb 20
DOW is holding in WLD with N Winds. One more day here and we may have something. The red candle makes me a little concerned that we will get to see another green candle at this level, but I did get out of the Jun $27 Puts to stay long. Volume is easing and we may see another pull back. Overall the trend is still up.

Prior Notes
2-16 : Will DOW prove me wrong to break $28? I'd like to see if it can get beyond $29.
2-12 : On way up.
2-9 : Nice move up.
2-4 : Next support $25.20 and then $23.60 before reversing.
2-3 : Dow broke through $27 support and reversed the TY-DT
2-2 : Expect Dow to test $27 support. Bought Jun $27 Put. H&S forming. Broke up channel, in WLD with S Winds.

Stock Update: AAPL

Sat, Feb 20

We are in No Mans Land at this point. Volume has pulled back and is reflective of the whole market taking a breather.

Commentary: Apple iPad and Why I am Still Keen

Ok, the word is out on the Apple iPad with mixed reviews so far. Many were expecting a bit more than what Apple delivered - USB port, SD card slot, and more computer-like capabilities - instead it was more like a bigger version of an iPhone/iTouch.

I can see where these folks are coming from, but Mr Jobs is not a stupid man. He knows that what the market wants is an instrument that gives you the ability to do more with what you ALREADY have.

If you have an iMac, Mac Pro, or MacBook, you already have a fantastic piece of equipment to do your work on. Then you have your iPhone to communicate and connect, play games, music, video and apps to fill in the rest of the gaps and which nicely syncs with what you have on your computer.

What is lacking is the ability to see all this stuff bigger. Do I want to spend another $1,000 bucks to do that which I have on my computer? Not really. Would it be useful to have a larger version of what I have on my iPhone to improve my productivity without dragging along my computer? I should say "Yes!".

If the Amazon Kindle has proven anything, it is the need for a device to bring along with me to read stuff on. Apple's iPad does that and more - photos, video, web surfing, email, calendar, etc. The Apps out there are also pretty sophisticated - I can read and write Excel and Word documents, play games, and much more. I don't need to replace my computer, I want to add to it. The iPad does exactly this. Are there improvements to be made? Sure. It will happen just as we have see the iPod and iPhone evolve, so too will the iPad.

It will sell. You watch.

Disclosure: Long AAPL