FunnyBiz.today Wise Investor Report Stock Market Forecast brought to you by James Alderdice
Dow Sets New Record Highs Every Day for the Past Week!
Wow, what a record-breaking week it has been! Remember in last month’s publication of our FunnyBiz.today Wise Investor Report, published just days after the “Brexit” vote by the UK to leave the EU had hit the world Markets, including the Dow Jones Industrial Average, like a George Forman Right to the Jaw, sending the Markets Down hard, but we commented: “once everyone stops ‘freaking out’ and cooler heads prevail, will the Markets settle down and begin again their recent climb Upward, with the Dow again rising above 18,000, and perhaps retesting last year’s All-Time High of 18,312, sometime this Summer?”
Well, man oh man, the 2016 Presidential Election year Summer Rally is Hot, Hot, Hot, with the Dow setting New Record All-Time Highs Every Day since last Tuesday, July 12, through today, Tuesday July 19, with the Dow Jones Industrial Average Closing today at another All-Time High at 18,559! As you can see from the 1-year chart of the Dow below, the past week is forming a new Support Level above Dow 18,500.
This should be a good environment for Writing Covered Call Options to gain an average of 10% Return On Investment Profit/Income over the next month, thus see our examples of Covered Call Option Trades below. Conversely, since the Dow has settled down, making small daily gains, instead of wild swings Up or Down, we will not be engaging in a new DJX Strangle or Straddle.
Presidential Election Years are generally positive for the Stock Markets, though not always, just remember 2008! But with the Dow setting new Highs every day for a week straight, and now less than 1,500 points away from Dow 20,000, there will be a psychological pull upon investors, both large and small, to see the Dow hit 20,000 by years end! However, also keep in mind that we are living in “perilous times,” and an unexpected economic or geopolitical event or major Terrorist attack can change everything in an instant, just like the recent Brexit Vote did. Your FunnyBiz.today Wise Investor Report will be watching to see what the rest of the Summer brings and we will keep you informed!
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