The Dow Now 6.22

indu daily chart

indu daily chart

The Dow Now

Looks like the Dow Jones Industrials index has fallen off the 200 day moving average.  No surprise there.  We noted the heavy resistance in previous blog posts.  It is now sitting on the 34 day moving average.  Underlying momentum is now starting to show signs of weakness.   This means I would not buy into any of these dips for longer term moves.   I am beginning to lean more toward holding on the short side.  I need the market to confirm this, so no shorts just yet.   I would take advantage of any market weakness with options.  Come to the chat room and see what we are doing in these conditions.

Today’s Lesson

You’ve heard it a million times by now: Knowledge is power.  Well in the markets it is the key to becoming a consistent trader.  If that is your goal, then one thing you need to do is always be actively pursuing knowledge about trading.   I hope you like to read.  If you don’t, you better start liking to read.   There are many books, magazines, blogs and papers written about trading in some form.   The key here is to focus only on information that is related to your goal and trading plan.  For example,  if your trading plan is built around the currency market on a swing trading basis, then you should find information just relating to that.  Google it.   Then you seek out like minded people, like us at Cashmechanics.com and compare notes.  This is how you really grow as a trader.   I know your next question: So what are some books you would suggest?   I suggest joing our site, coming to our chat room and I will point you in the right direction.  It is different for everyone.

Upcoming Market Highlights
USA – Click here for details.

Tuesday      – Existing home sales
Wednesday – FOMC meeting, Oil Inventories
Thursday    – Q1 GDP revision, Bernanke testifies

World – Click here for details.

Monday        – German IFO business sentiment indicators
Tuesday       – Eurozone PMIs, German Consumer Confidence
Wednesdsy   – Eurozone current account
Thursday      - Eurozone industrial new orders
Friday           - German consumer prices

For the other countries check out the details link above.

Conclusion
The upward momentum that has been pushing the markets higher recently is beginning to turn.  Intraday markets are choppy and indecisive.  In conditions like this, it really helps to take the time and further educate yourself.  Plan your trading education, and stay focussed.  Of course we are here to help you with just that.  Join us in the chat room and we will coach you along.  See you there!

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