Dow (INDEXDJX:DJI) aiming 30K points in the week to follow. – Idaho Reporter

INDEXDJX: .DJI, IndexNasdaq IXIC

Dow (INDEXDJX:DJI) aiming 30K points in the week to follow.

The Dow Jones Industrial Average (also known as INDEXDJX: DJI) added a couple of points at the end of a good week on the stock market. The U.S. benchmark index turned positive in late trading on Friday, while the two technology-heavy Nasdaq indices suffered from profit-taking. They had rushed from record to record in the past few days. A strong labor market report initially provided some relief in the course of trading, but then overall cautiousness outweighed the recent resurgence of the dispute between USA and China.

The Dow rose 0.17 percent to 27,433.48 points. On a weekly basis, there is an increase of 3.80 percent. For the market-wide S&P 500 (INDEXSP: .INX) numbers slightly went up on Friday by 0.06 percent to 3351.28 points.

Nasdaq-100 (INDEXNASDAQ: NDX) lost more than 120 points on Friday. The Nasdaq Composite (INDEXNASDAQ: .IXIC) had initially struggled to reach another record high before turning into the red and ultimately losing almost 1 percent.

The labor market report had been awaited with particular suspense, as it should be interpreted as an indication of the question whether the increasing economic optimism in the United States is justified. In fact, according to the data, employment in the USA rose surprisingly significantly in July, which made up for the sharp slump in the Corona crisis.

Analyst Michael Hewson from trading house CMC Markets pointed out that the figures did not include the past two weeks, and thus also not the increasing number of infections and the new regional lockdowns. In any case, the ups and downs in the labor market are currently difficult to capture in the figures, as the retrospectively strongly revised upwards data for May and June showed.

With a view to the renewed dispute between Washington and Beijing, the U.S. government announced that it would take action on a broad front against “untrustworthy apps from China” and want to remove them from the app stores. Names like the video app TikTok and the messenger service Wechat were mentioned. The U.S. increased the pressure on China ahead of the planned meeting of the two countries on August 15, wrote expert Stephen Innes from the broker AxiCorp. The Beijing government spoke of “bullying”.

A strong quarterly report paired with a surprisingly good outlook brought the shares of T-Mobile US (Nasdaq:TMUS) an increase of 6.5 percent. In the course of trading, the shares of the Deutsche Telekom mobile phone subsidiary had reached an all-time high.

T-Mobile US expanded its business significantly thanks to the takeover of its smaller rival Sprint. The company surprised positively with adjusted operating profit. In addition, the corresponding forecast for the rest of the year was, according to analysts, above market expectations.

What is ahead of us for Dow Jones Index?

Everything is pointing out that we are looking for another week of gains and a possible all time high number. Dow Jones Industrial Average Index closed 30,000 point just before corona crisis and it went down in March. The numbers are slowly but surely going up ever since, hitting small road bumps on its way.

According to MarketWatch we are witnessing the “Golden Cross” (wow, sounds mystical) right now.

A golden cross occurs when the 50-day moving average for an asset price trades above the 200-day MA, while a so-called death cross, comparatively, is when the 50-day falls below the long-term average.

source

Of course, the “Death Cross” was the best time to buy shares, now is the time to think twice about it with all these prices going up week after week.

But charts and crosses are something that will not push the stock prices up. It is EXPECTATIONS, they are the main reason behind this price rally. And the rally will continue from here. And 30K points for DJIA is just a number that will have to go down eventually, especially with so many newbie buyers pumping in the stupid money.

Share your thoughts

Theme by Anders Norén