DJIA

Technical analysis and commentary on the Dow Jones Industrial Average and the component companies. Sterling Investment Services has been providing and publishing technical analysis on the major market indices and individual stocks since 1996. We believe our track record of accurate analysis and forecasting major moves in the Dow Jones Industrial Average is among the best. We provide simple easy to read commentary with trend direction, support and resistance levels along with directional targets.

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Sterling Market Commentary for Monday August 13th, 2012

August 13, 2012 sterlinginvestments 0

I would not get too excited about the Dow Jones Industrial Average’s recent move above 13,000. On March 15th of this year the Dow Jones Industrial Average closed at 13,252.76 only to move back lower. On April 2nd of this year the Dow Jones Industrial Average closed at 13,264.49 only to move back lower. On May 1st of this year, the Dow Jones Industrial closed at 13,279.32 I think this forms an upward sloping trendline that is upside resistance. At the current levels, I see this resistance coming into play at approximately 13,330 on the Dow Jones Industrial Average. Until the Dow Jones Industrial Average closes above this level, I would not get too excited about the current move higher.

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Sterling Market Commentary for Wednesday March 7th, 2012

March 7, 2012 sterlinginvestments 0

A Few Thoughts on Wednesday’s Market: In looking at the charts from yesterday’s trading activity it is pretty clear that basically every index I track has broken its upward or sideways trend and looks to starting what should be at least a short term pullback. There only 2 stocks with a more than a million shares in average daily trading volume that closed at a new yearly high yesterday; and the very vast majority of the heavy volume stocks moved lower on the day.

I continue to see support on the Dow Jones Industrial Average coming in at….

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Sterling Market Commentary for Tuesday March 6th, 2012

March 6, 2012 sterlinginvestments 0

In my review of the charts from yesterday’s trading activity I noticed that the vast majority of the various indices I track appear to be starting to move lower. This is generally a bearish signal for the overall market. The second thing I noticed was the vast majority of the heavy volume stocks appear to be moving lower, another bearish signal for the overall market. It looks to me as if we are starting a market pullback. If that is the case, then I expect the Dow Jones Industrial Average to move lower and test support at 12,719.49 If that level fails to hold support on the Dow Jones Industrial Average, then I see a good possibility that the Dow Industrials will move lower and test …..

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Sterling Market Commentary for Monday March 5th, 2012

March 5, 2012 sterlinginvestments 0

In looking at the charts from Friday’s market activity I noticed three (3) things that really stood out. The first thing I noticed is that a majority of the sector indices I looked at had negative chart patterns. This is generally a precursor for a broader market pullback. The second thing I noticed was very few of the stocks setting new yearly highs had average daily trading volume above 1 million shares. To me, this indicates that the larger companies are not participating as much in the recent market rally. The third thing I noticed was the majority of the stocks with heavy volume looked to be moving lower. This is generally a bearish trading signal.

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Sterling Weekly for the Week of March 5th, 2012 – A Look at Bond Prices and Higher Rates

March 5, 2012 sterlinginvestments 0

Regular readers of the Sterling Weekly will recall that I have been voicing my concerns about the Fed’s manipulation of interest rates to abnormally low levels for quite some time. I have expressed my concerns that this is inflationary in nature, and that as a result we could see interest rates rise to levels not seen since the mid to late 1990’s when the 30-Year Bond yielded approximately 7.5%. (Sterling Weekly for September 26th, 2011) I thought it would be a good idea to take a look how an increase in interest rates would affect the price of current government bonds.

As of last Friday March 2nd, the US Government 5-Year Bonds was yielding approximately 0.85%, the 10-Year Bond was yielding approximately 1.99%, and 30-Year Bond was yielding approximately 3.14%. I have said for a very long time that I believe these bond yields are artificially low due to their manipulation by the Federal Reserve. I think that this is causing a bubble in the bond market that could have very disastrous consequence when it finally bursts, as all bubble ultimately do.

I think that it is very realistic to expect that we will see the price of US Government bonds return to their pre-2008 levels at some point in the reasonable future, by this I mean interest rate levels seen…..

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Sterling Weekly for February 27th, 2012 – A Look at the Price of Oil

February 28, 2012 sterlinginvestments 0

The price of oil reached a short term high of $113.92 per barrel on April 29th, 2011, and then declined to $76.78 on October 4th, 2011. What is very important about this chart is that if the price of oil closed above $113.92 per barrel, then it will have completed a “cup pattern” with a measured move to $151.06 per barrel. I consider cup patterns to be very highly reliable, and very predictable. On Friday the price of wholesale gasoline closed at $3.15 per gallon. This is a ratio of just under 35 to 1 between the price of oil and gasoline. Applying that ratio to $150 per barrel oil and you get an estimated wholesale gasoline of approximately $4.28 per gallon. That would most likely put the price at the pump close to….

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Sterling Market Commentary for Friday February 24th, 2012 – A Quick Look at Oil

February 24, 2012 sterlinginvestments 0

Also, it should be noted that despite the upward movement of the Dow Jones Industrial Average and the S&P 500, the Dow Jones Transportation Index has been moving lower. For those who believe in the Dow Theory this is a negative signal for the overall market. My thoughts are that the Dow Transports are being pushed lower due to higher oil prices; additionally the Dow Jones Transportation Average is generally considered to be a fairly reliable indicator as transports companies ship goods and services, thus providing a good look at where the economy is going. If this trend continues, then the odds are that the broad market will follow the transports lower, not the other way around. ….

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Sterling Market Commentary for Monday Feburary 13th, 2012

February 13, 2012 sterlinginvestments 0

In looking at the charts from Friday’s market I noticed that a pretty high number of the various sector indices I track appear to be turning negative. Also in looking at the stocks with the highest trading volume, the majority of those that are not moving sideways look weak with negative chart patterns. History has taught me that this generally precedes a turn lower by the market. My thoughts are that the recent move higher may be beginning to run out of steam. With respect to the Greek Financial Crisis, I just do not see the Greek people easily accepting the mandated reforms. I do not think the Greek Financial Crisis is over yet……..