Dow 19,500 resistance level breached. Entering the danger zone

Hi Readers,

After Dow 19,500 resistance level was breach on Wednesday, Dec 7, we are looking for a new resistance level of 20,000.  A serious correction of 5-10% may happen before reaching Dow 20,000.   There will be profit taking and the gnomes of Wall Street are just waiting for a slight whiff of any bad news to dump some stocks and get back in after the correction.  For now, those who stayed with me and did not panic and did not get out of the market before election day, let’s open some bottles of champagne  this weekend, congratulate ourselves and enjoy this Trump rally. Just remember our long term outlook. If Trump’s proposal for lower taxes sails through the Republican Congress and Senate, we will have a lot of foreign earnings coming back into our economy. A lot of it will find its way into the stock market.  Let us check back if/when the Dow breaks past our new resistance level of 20,000.  Have a great weekend!

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