Wall Street Will Be Listening Closely to Obama [Video]

The Dow Jones Industrial Average's ($INDU) eight-week winning streak is on the line in the days ahead, and it'll face perhaps it's toughest test of the year so far. Not only will traders contend with a slew of high-profile earnings reports, key economic data and a Federal Reserve meeting, but Tuesday brings President Barack Obama's State of the Union address.

As much as anything, traders will be reading between the president's lines to see what the administration's new approach means for business and the market, says Doreen Mogavero, president and chief executive of Mogavero, Lee & Co.

President Barack Obama"Language at this point in time is very important," the veteran New York Stock Exchange trader says. "We all kind of know where we are right now, and we've come a long way very quickly. But this could be a time where people who've had tremendous gains might be a little hesitant as to how much higher can we go and take a little money off the table."

The market's technical conditions remain overbought and sentiment, a contrarian indicator, is robustly bullish. After tacking on more than 850 points in the last couple of the months, the Dow is overdue for a cool-off. See the chart below.



With nearly half of the 30 Dow components and a quarter of the S&P 500 ($INX) reporting quarterly results this week, econ data and the president's address, this could be as good a time for profit-taking as any.

"We may see the markets doing a little bit of back-and-forth this week," Mogavero says. After all, it's hard not to be bullish on the market longer term after the run we've had, she says, but at some point some traders will start to realize those gains and begin to reevaluate their positions.

For more on Mogavero's take from the floor of the NYSE (NYX), see the video above.


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k4jlp

Wall Streets scam on energy futures is coming to an end...the oil elite has scammed all they are gonna get off the backs of working America...they don't even take delivery of the product, just use computer software to jack the price with only 5% of their money on the line while we pay triple what it should be. Gas at the pump should be 1.29/gallon right now, demand is way down due to the punks outsourcing all our jobs overseas...SPECULATORS, WE ARE WATCHING..WE ARE LOOKING AT YOU EYEBALL TO EYEBALL...

January 25 2011 at 6:28 AM Report abuse +2 rate up rate down Reply
rotten rollin

SOTU = SOS. Save Our Souls, Save Our Ship, or Same Old Sh t. Take your pick.

Always remember with Obama: Watch what he does, NOT what he says. He'll say anything.

January 24 2011 at 10:51 PM Report abuse +3 rate up rate down Reply
borderlinedefect

Oh, Please! The New York Stock Echange isn't about America anymore. Wall Street should change its name to World Sreet. A general strike in Greece or a debt crisis in Portugal has far more effect on stocks than anything the President of the United States has to say. America is just another piece of the pie and not the biggest piece either.

January 24 2011 at 10:50 PM Report abuse +7 rate up rate down Reply
savemycountry911

Liberals make up their own "facts". They never consider how we will pay for Obamacare. They just take and take.

January 24 2011 at 9:46 PM Report abuse +4 rate up rate down Reply
1 reply to savemycountry911's comment
doonooch

THOSE "LIBRUL / OBAMACARE" SLOGANS ARE WELL WORN AND TIRESOME. GIVE IT A REST.

January 25 2011 at 4:10 AM Report abuse rate up rate down Reply
k4jlp

You mean they will be listening to see if their scam game is coming to an end or do they have the green light to continue? If I had oil futures, I would sell sell sell, crude will tank to 45.00/barrel within 9 weeks...price fixing investigations have started with crude futures...Goldman is first..

January 24 2011 at 9:21 PM Report abuse +3 rate up rate down Reply
mac2jr

good night friends...

January 24 2011 at 8:50 PM Report abuse rate up rate down Reply
mac2jr

The entire school system of one Philadelphia Neighborhood is being revamped using Stimulus funds. The revanp is to be patterned after the Harlem Project, one of the most successful in the nation..... Go President Obama.

January 24 2011 at 8:49 PM Report abuse -1 rate up rate down Reply
mac2jr

Less than 24% of the citizens of the USA polled now believe we should Repeal the Health Care Bill; most fell that it contains enough good points to keep it and let it grow to the needs of the individuals that are benefiting from this Bill that has been 100 years in the making.....

January 24 2011 at 8:47 PM Report abuse rate up rate down Reply
1 reply to mac2jr's comment
savemycountry911

Wrong. 100% of those who were responsible for the shellacking want it repealed. That would be the taxpayers.

January 24 2011 at 9:44 PM Report abuse +2 rate up rate down Reply
mac2jr

President Obama has with the 'stimulus' package helped fix 6,600 bridges and roads thus far, and there are 6,700 more road projects under way, this not only fixes a good part of our infrastructure, but put tens of thousands of people to work and probably saved tens of thousands of lives and trillions of future dollars replacing the roads and bridges if none were repaired.......

January 24 2011 at 8:44 PM Report abuse -2 rate up rate down Reply
1 reply to mac2jr's comment
doonooch

It's very difficult for the ignorant masses to understand long term planning and investment. I found you cant convice them of anything.

January 25 2011 at 4:13 AM Report abuse +1 rate up rate down Reply
mac2jr

President Obama has with the 'stimulus' package helped fix 6,600 bridges and roads thus far, and there are 6,700 more road projects under way, this not only fixes a good part of our infrastructure, but put tens of thousands of people to work and probably saved tens of thousands of lives and trillions of future dollars replacing the roads and bridges if none were repaired.......

January 24 2011 at 8:44 PM Report abuse -1 rate up rate down Reply