Bullish

DJ Resistance:  20,758      All-time high
                           20,743      All-time closing high

DJ Support:      20,640
                           20,440
                           20,200      50 Days moving average
                           20,125      Strong January peak
                           20,000      Very strong
                           19,978      200 Days moving average
                           19,732      Strong
                           19,678      January low
                           19,200      Strong
                           19,090
                           18,800
                           18,668      Old all-time high
                           18,247      August low
                           18,000      Strong
                           17,833.23 November low
                           17,579      Inflection point
                           17,125      Very strong

Technical Analysis:
New all-time record high again for the three indexes. The breakout of SP2,300 and DJ20,600 is very bullish. When the market is going to consolidate DJ20.000 and DJ20,125 both levels would be strong supports and a bounce up from there would be an excellent confirmation for the bulls. Dow Jones posted eight straight daily advance.
Next targets are DJ21,000 and SP2,390.
It is possible a consolidation in the near term and for the mid and long term the trend is clearly bullish-leaning.

Please click over the chart to enlarge it.

                         
 Fundamentals:
 I have explained in my previous blogs why I am bullish for 2017. We are witnessing positive economic, corporate news, and the market is expecting better statistics and economic news in the coming months. That means that the GDP will accelerate to the upside due the higher infrastructure spending and lower taxes, and possible protectionism in U.S.A.

The next question is what is the target or is there a correction in the way or at least a pullback? My guess is that the market is going to get the targets DJ21,000, S&P2,390-2,400 and NASDAQ COMPOSITE 6,000 and then they will enter in a consolidation. The traders and short term investors will download part of their portfolio.

Dear traders and investors, the mid and long term is to be long stocks and in U.S. Dollars, if we face a correction or a pullback stay long.


 Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!                     
                         

Dow jones New Highs

DJ Resistance:  20,504.41 New all-time high

DJ Support:      20,100.91
                           20,000
                           19,800      50 days moving average
                           19,732      Strong
                           19,678      January closing
                           19,200      Strong
                           19,090
                           18,800
                           18,668      Old all-time high
                           18,247      August low
                           18.000      Strong
                           17,833.23 November low
                           17,579      Inflection point
                           17,125      Strong

Technical Analysis:
The three indexes did new record highs. The panorama is auspicious.
DJIA got uncharted territories after showed strong support at DJ20,002 last week. Its uptrend is confirmed by this bounce up after testing support at DJ20,000. S&P did a similar path is showing a bullish mood well supported by the bounce up after tested its support.
The trend for the three indexes is bullish barring a violation of support, DJ19,732.
                         
Please click over the chart to enlarge it.

Funfamentals:
We have witnessed an important change, 2016 Q4 corporate earnings returned to growth after five straight quarters of declines from 2015 to 2016. Wall Street investment banking are forecasting better corporate earnings for 2017.
January Small Business Optimism Index (SBOI - NFIB) showed again to be in in the highest level from 2004 at 105.9. This index comprises the largest employer in the U.S.A. and they answer question like capital investment, economic expectations, hiring, expected credit conditions, sales expectations. In summary, they also predict a positive 2017.

Dear traders and investors, these expectations accompanied by positive economic news like retail sales rise more than expected in January, Empire States Manufacturing Index surged in February, strengthen my bullish expectations for 2017. Do not forget about volatility.

Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!

Trend is Still Bullish

DJ Resistance:  20,155      New all-time high
                           20,100.91 Record close

DJ Support:      19,770      50 Days moving average
                           19,732    
                           19,678      January closing low
                           19,200      Strong
                           19,090
                           18,800
                           18,668      Old all-time high
                           18,247      August low
                           18,000      Strong
                           17,833.23 November low
                           17,579      Inflection point
                           17,125      Strong

Technical Analysis:
The three indexes are in the highs. DJIA did a new all-time high. What we don't see is a frankly follow through.
The DJIA as the other two indexes are very well supported and they have a clearly up trend barring a breakdown of the support. S&P is fighting with SP2,300 and its all-time high is SP2,300.99 and the record close at SP2,298.37.

Click over the chart to enlarge it.

Fundamentals:
The new administration plans to stimulate the economy with "Buy american and hire American" (Trump's motto during the campaign) and investing for recovery and developping U.S.A. infrastructure. The average age of the fixed assets owned by the goverment was 24 years in 2015. To achive that the goverment thinks that they need one trillion dollras. Democrats proposed the same idea in 2015 and 2016. It seems that the path to get this project differs in the way, democrats wants to do through the goverment investment and Trump administration wants through APP (Asociation of Private Public). This project includes repair & replacement of aging bridges and motorways, upgrading electricity networks and water systems, repairing and fixing outdated dams and river locks, building railways and airports. Trump wants to recover the domestic manufacturing. All these in practice should be positive for the country and its economy.
Economic news are acceptable like corporate earnings during this season. Why is there not a follow through over DJ20,000 and S&P2,300? UNCERTAINTY. The market is taken as positive the first measurements taken by the new administration but the uncertainty of how will it be implemented and their future results is stopping an explosive follow through.

Dear traders and investors, the mood and the expectations are clearly supporting the upside bias of the market but we need to take some defensive measures in our portfolio due these big uncertainties.

Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!

New Old-time High but Month Closing on Defensive

DJ Resistance:  20,125      New old-time high
                           20,000
                           19,987
                         
DJ Support:      19,732
                           19,678      January closing low
                           19,662      5 Days moving average
                           19,200      Strong
                           19,090
                           18,800
                           18,668      Old all-time low
                           18,247      August low
                           18,000      Strong
                           17,833.23 November low
                           17,579      Inflection point
                           17,125      Strong

Technical Analysis:
The three indexes closed January in a defensive mood after have done new record all-time high. S&P closed over its support SP2,277 with a January peak at SP2,300.99.  DJIA is weaker and is under DJ20,000, a violation of DJ19,662 (50 days moving average) will put the index in neutral territory with high possibilities for a correction.
Although the defensive January close the three indexes are showing an uptrend bias especially S&P and NASDAQ COMPOSITE.

Please click over the charts to enlarge them>

Fundamentals:
New administration is in charge and putting in service its election promises. For the moment there is uncertainty in the markets and that is terrible for them. More uncertainty more sale of stocks.
Last week we got the GDP for the 4th. Quarter, the market was expecting something over +2% until +2.9% and we got +1.9%. Let's say below expectations but it is a good number for the economy. It is true that for the 3rd. Quarter we got +3.5% but before it was +1.4, +0.8, +0.9. Then 4th. Quarter figure showed improvement in the economy and better consumption promises.
This week we will have important indications about the U.S. economy like FOMC Meeting announcement, ISM Manufacturing, ISMA Services, ADP employment, Construction spending, Productivity, and unemployment with non-farm payroll on this coming Friday. All of them should add fuel to the economy.

Dear traders and investors, I remain bullish and I think the retracements should be taken as an excellent opportunities to buy stocks and increase the positions.

Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!