Thanksgiving has now come and gone. It's the best weekend of the year in our opinion but that's not why you're here so...Let's talk about the past few days trading and see what lies ahead.
On Wednesday, the stock market fell out of bed and the Dow put in a new closing low for the move, closing below August low. The trading low is much further down than this so the market seemed to take comfort with that. If you read the news about the Dow Theory, you know that the Dow Industrials confirmed the Dow Transports drop to new lows and thereby confirming that the trend is down. This news is little followed anymore and hardly registers on anyone's radar screens either. We thought we'd mention it here in case you hadn't heard it.
With the Dow closing at a new low for the move, Friday's trading day could have been down but the market was looking at pictures of shoppers at 5 o'clock in the morning spending money they probably don't have. With everyone thinking the customer is back in business, the stock market thought it could rally off the new closing low. So, as Wednesday gave us a down Dow of 211, Friday erased most of that with a 181 point up move.
That is the case this evening, too, as we see the futures and the Asian markets all trading markedly higher. Whatever is left of that 211 on Wednesday should be swallowed up on Monday morning unless something negative is announced before the trading day begins.
Let's keep this brief this evening and get back together tomorrow after we have seen what a real day's trading can bring.
We trust you all had a nice Thanksgiving holiday.
Wednesday: 99.02 (up when the Dow hit a new low)