Sunday, January 6, 2008
DJIA - 6th black candle, rise in unemployment, headed for recession
DJIA = 12,800.18 (-1.96%)
DJIA formed another black candle with lower low and lower high. Volume increasing.
DJIA might test support at recent low of 12,700.
DJIA suffered last Friday due to increase in unemployment in the US which might herald the coming of a recession.
Due to the weakness last Friday in the US stock market it is more certain than not that we will suffer the same sell off in the local market once trading starts on Monday.
Take note of your stop loss levels and be disciplined in observing them. Better to lose small than to lose big.