Software & Finance - Monthly Magazine Online

Volume 2 - Issue 9

September 2012

Dow Jones to Check All Time High of 14164.53 before election?

Aug 15, 2012 - Dow Jones Industrial Average (.DJIA) Index closed today at 13250.11. A strong bullish break out technical is making us to consider whether dow jones can retest its all time high during 2012, that too before the election? Its the crazy market and anything can happen even though fundamentals are pointing very week across the world.


Dow Jones Industrial Average Index closed set its all time high of 14164.53 on Oct 9, 2007 and its intraday all time high of 14,198.10 on Oct 11, 2007.


As of today Aug 15, 2012, Dow Jones is just 914.42 points away its all time high of 14164.53. A strong one week rally could take us to these levels. However it is very risky to hold long positions on US equities now. Currently US$ is the only one that could be treated as safe heaven.


As Dow is on track to test its all time high, the treasurues sell off also begins aggresively. This will eventually increase the interest rate that can collapse the home prices further. Currently US home inventory for sales are near to all time low levels. It shows that sellers are waiting to get rid of their property once the break even point reaches. The sudden increase in interest rate will create a huge panic in the sellers and most sellers will put the home for sale board in the coming weeks. This will most likely to increase the home inventory for sale.