1) Dow Jones is still strong. Market still remains strong and vibrant. This is despite fears of a world cup selloff. Yesterday closing price was16842, 100 points off from the all time high.
2) 2 Weeks ago, when there is turmoil in Iraq, the index came down a little. At that time, we advised everybody not to worry. When the US government and Obama are not worried, why should we?
3) Now we still maintain the view that US stock market is still healthy and strong.
4) In July, US will be entering the earnings season. Starting from 8th July, the majority of US companies will start to declare their earnings.
5) I encourage all to take note of the big companes reports. They are going to shed some light of the direction of the market in the 3rd quarter.
6) We encourage all to take note of Banking and Technological sector.
7) We do think that these 2 sectors are good to invest. One of the reasons is that most of the companies in these sectors have already dropped 10-15%.
8) If you would like to invest in an industry that is stable, do look at the BANKS!
9) Another thing that you might want to take note is next Thursday employment figures.
10) From a technical viewpoint, Dow indeed has a minor resistance at 17000. But I feel that the chance of breaking 17000 is high
11) Short term support for Dow is 16600. Major support is at 16000! If Dow really comes back below 16000, I think it is an extremely good chance to enter as I think it is cheap.