Swing Trading Strategies & Stock Picks Since 2003

Dow Industrial Average

Key Statistics: Mar 9

Open: 10552.24

High: 10612.60

Low: 10533.93

Close: 10563.40

Change: 11.86 (0.10%)

RSI: 70.54

MACD: 64.26

Strategy

The recent uptrend has started showing signs of showing signs of tiring out again and is finding difficult to advance with a strong momentum, as participants are now becoming risk averse. However, the cheap borrowing costs is still allowing the indices to gain at a slow pace.

Market Commentary

The US markets remained almost flat for a major part of the Monday’s session, as a listless trading dominated the proceedings in absence of any major economic indicators. The Dow Industrial Average closed with nominal gain of 11.56 points or 0.10 % at 10563.40 points. However, the technology heavy Nasdaq Composite fared better by advancing further by another 8 points, to 2340.68 points. The S&P 500 index ended almost flat at 1140 points at the end of the session.

Tuesday also marked the one year anniversary of what was the past 12 year low for Dow and 6 year bottom for Nasdaq.

Meanwhile, the networking giant Cisco Systems unveiled its new router, of what it claims could alleviate the congestion on mobile data networks. After an initial head start in anticipation of a significant announcement that the company would make, the stock subsided later in the day.

Sprint Nextel Corp, another player from telecom solution providers, gained in the process following an improved sentiment in telecom stocks like AT & T etc.

Verizon Communications shares, another constituent from Dow index also rose 0.9% in the session.

The financials stocks remained strong throughout the session backed by heavy volumes as American International Group vaulted 12.6%, Fannie Mae jumped 5.9%, Freddie Mac gained 7.6%, and Citigroup advanced 7.3% in the single session.  

The Citigroup stocks climbed on rumors that the government is discussing plans to sell its 27% stake in the bank, perhaps within the next three months.

AIG, of course, advanced further following the deal it finalized with MetLife for sale of Alico on Monday in a cash and stock $15.5 billion deal.

Apart from same, AIG a debt sale by an important unit went well. A $1.3 billion loan offering by International Lease Finance Corp. has met with strong investor demand.

The industrial sector gained from a 0.8% rise in Boeing Co. after Northrop Grumman Corp. said it would drop out of a protracted quest to win a $40 billion contract to build the U.S. Air Force's next generation of aerial-refueling planes, putting Boeing with an upper hand to gain the deal.

Crude-oil futures slipped 38 cents to $81.49 a barrel, while gold futures also moved lower for May deliveries.

The Day Ahead

President Obama speaks for healthcare bill

Wholesale trade for January

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