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It's economic basics that a decline is followed by an upswing or even a boom like in the '90s, and then there's a high possibility of a recession. It is impossible for any economy to just grow continuously. And in times of globalization where so many corporations and sectors are cross-linked and intertwined, when one big economy struggles, others can suffer too.
While you can't directly trade the Dow since it is just an average, you can take advantage of it in other ways, including buying some of the companies included in the index or by trading ETFs and mutual funds based on the Dow.
It also didn't hurt that crude oil futures briefly dipped below $60 a barrel on Monday. Oil prices have fallen by more than 20% since the July peak above $78 a barrel; thanks in large part to rising global inventories.
Which other techniques can be used in order to check the correctness of R. Axel's levels. For instance, on July 7, 2006 the fourth level of resistance for the EUR/GBP pair was calculated before the issue of news. It made the local peak in American session. (GBP was at 1.8540; EUR was at 1.2860).
All this is utter crap! The game is not over! In mechanics, mathematics, physics, electronics, food production, transportation, biomed, engineering, energy production, increased physical capabilities of the human body and a host of other endeavors that will elevate mankind have not been abandoned. The work, the dreams, the imagination, and the motivation goes on in spite of what a pack of blood scented reporters and analysts are convinced of.
The company in the US that commands the most amount of public investor cash is Apple Inc (AAPL), but it is not tracked by the Dow jones Industrials. Royal Dutch Shell (RDS) and PetroChina Company Ltd (PTR) are also left off of the Dow Jones list even though they have more cash than the rest of the DJI list below Exxon, who tops the Dow Jones list as having the most cash.
The components of the Dow is basically a who's who of the financial world. I'll give you the 30 companies here. It's a good idea to check them out. Currently, the Dow 30 is comprised of 3M, Alcoa, American Express, AT & T, Bank of America, Boeing, stock market fluctuations (mcdonaldauto.ning.com) Caterpillar, Chevron, Cisco, DuPont, ExxonMobil, General Electric, HP, Home Depot, Intel, IBM, Johnson & Johnson, JP Morgan Chase, Kraft Foods, McDonald's, Merck, Microsoft, Pfizer, Procter & Gamble, Travelers, United Technologies Corporation, Verizon Communications, and Wal-Mart.
Look up from your work and realize that that beautiful sunrise you've been ignoring while you're face down in a $6 cup of coffee was put there for you to enjoy. Enjoy the sunrise. It's free.
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