This is what it’s like taking cues from China…
Dr Li Wenliang (one of the doctors Chinese police targeted during their raid on fake news), was declared dead at 21:30 local time on Thursday. He’d been receiving ‘emergency treatment’ at a hospital in Wuhan.
Interestingly, a few hours later the Global Times — a Chinese state-run media outlet — backtracked and said this. ‘Li Wenliang is currently in critical condition…’
So, wait, he’s now alive? Well that’s good news!
I’ll admit it’s quite confusing, but I suppose it’s nothing out of the ordinary when it comes to China…
Thankfully The Guardian decided to clear up this mess…
‘The whistleblowing Chinese doctor who tried to raise the alarm about the coronavirus outbreak died in the early hours of Friday, a Communist party-controlled newspaper has now confirmed.’
Chinese officials meddle information
So what caused this disarray?
Turns out government officials got involved and wanted to meddle with information.
Can’t say this would’ve been the first time!
They’d advised media outlets to change their reports — don’t take my word for it though, here’s what the BBC said:
‘Official media outlets had been told to change their reports to say the doctor was still being treated.’
It’s hard to find the truth these days. What can we truly believe about Wuhan and the coronavirus? Are there really only 565 deaths?
I don’t know the answers to those questions. But I’ll proudly remain a sceptic on the issue.
Anyway, let’s shift gears and take a look at the Dow Jones.
As you know, we’ve been tracking it for the last two weeks.
Why is this index important?
If you’re confused as to why we’ve been tracking the Dow, let me explain.
The Dow tracks the top 30 companies in America. Yes, it may not be the best representation of the overall market…
But it does give us an idea of how some of the biggest companies are performing such as Apple, Boeing, Coca-Cola and Disney
The above four are a random sample of the 30. But it’s a diverse range of sectors and that is what’s important.
I’ve attached the chart of the Dow Jones for you below.
Source: Trading View
What you’re looking at is the daily bar chart of the Dow Jones.
There are four lines on the chart, they’re all support levels to a fall in price.
More on that shortly…
Blue sky on the Dow Jones
Overnight the Dow Jones moved into ‘blue sky’. That means it’s now in a new all-time high.
This is generally bullish. But we cannot confirm that right now.
Any major move higher generally has to come down. And that’s why you’ve been watching the support levels.
The pink line is the most important right now. It’s the halfway point between the high and the low.
I’ve not changed its position since you last saw it. Here’s why it’s important though.
If the market can remain above this, then it may signal higher prices in the short term.
And that will suit the Donald perfectly…a falling Dow won’t look good come election time.
If the Dow continues to rise…I’ll start to place price targets on it.
This is where the real fun begins. Oh, and where the market will make a fool of me.
It’s important that we don’t place our opinions on the market. Let the weight of the money guide us.
Until next time,
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