Dow Jones Industrial Average trample bearish trend

Dow Jones Industrial Average rising against the bulls confident attacks.

In brief: Dow Jones Industrial Average remains in the green zone. Leader of growth becomes Alcoa. Support for the bulls will last until the end of the day.

Dow can’t go down, – as the bulls say… Alcoa makes the Dow Jones Industrial Average to rise throughout the day. The stock market situation today is mostly driven by the move of the Central Bank of China. As reported, Chinese monetary authorities have allowed some revaluation of yuan and that caused some euphoria among the traders. Later, when the facts about yuan new state policy become clarified the market euphoria was evaporated. By fact, the free-float yuan remains an distant American dream, furthermore – the announced move can devalue yuan in the long term.

So it is senseless speculation to count on the strong yuan in the nearest future as a savior of American manufacturing sector. Dow Jones Industrial has initially gained momentum, but during the trading session we see a gradual deflation of the morning’s high hopes. First of all, we cannot ignore the fact, that Wall Mart and Home Depot, both of them having a close ties with the Chinese manufacturers are under negative influence. Analysts are speculating that retail prices in these store chains will grow, and the overall volume of trade will fall. I think, that the convergence of ‘strong’ yuan and retail prices will be not so linear, even if it will sow up at all. Traders surely will overcome the negative trend (may be closer to the end of trade session) and the shares of Wall Mart and Home Depot will rise. But for now the first have lost -0.80% (-0.41), the second retailer lost -1.00% (-0.32) of initial value.
Also Dow Jomes industrial suffers from the slump of pharmaceutical companies. Merck, Pfizer, and some other companies are leading the fall. The main resource for growth – the Alcoa shares have risen the spectacular 7,02%. I do not expect that they will rise more. The overall forecast for the day remains positive, but I do not expect the growth of DJIA more than 0,4%.

Pavel Nurminen
2010-06-21 17:33, Economics.

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2 comments к “Dow Jones Industrial Average trample bearish trend”

  1. FUCK Says:

    DO YOU HAVE ANY IDEA WHAT YOU’RE WRITING.
    STOP WRITING THIS INSANE BATSHIT. YOU’RE MAKING UP HEADLINES SO PEOPLE WILL FLOCK TO YOU PATHETIC SITE. PLEASE STOP WRITING AND ACTUALLY CONTRIBUTE TO SOCIETY.

  2. eng-admin Says:

    Just interesting, what especialy insane have you spotted, Mr. Fuck?

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