The “Target 12,000” Program is a turnkey solution for clients with medium term investment horizon. The program targets return of 20%* through investments in the Dow Jones Industrial Average (DJIA) components, expected to reach 12,000 in the upcoming future.
*As of May 27th, 2010
The DJIA will once again begin its move toward 12,000 after the market correction of May 2010. The US economy has emerged from the worst recession in 8 decades and reasonable GDP growth has begun.
1. Q1-2010 Earnings beating expectations
Earnings in Q1-2010 were generally better than expected and there were signs of unanticipated rapid improvement in industries like technology and automotive.
2. Improvement of Unemployment Rate
The jobless rate is likely to improve in Q2-2010: Employers added 290,000 workers to payrolls in April 2010, the biggest increase in 4 years and the 5th gain in the past 6 months, the Labor Department reported.
3. Mortgage Market Stabilizing
Wall street has finally begun to re-emerge from the subprime debacle that began in 2007. Banks are
reporting profits once again as the mortgage market stabilizes.
The S&P/Case Shiller home-price Index of property values in 20 cities increased 2.3% from March 2009.
4. DJIA: Technical Analysis
As seen below, the DJIA is in his correction phase, a more secure bottom needs recovery of the 38.2% retracement and the time cycle could hit it down to maximum level of 9,403, once the time cycle of the correction ends, there is solid bull trend set at 10,917, on break above 10,698. The next upside projected target is at 11,206, extending to 11,702 and 12,010.
