TAIL OF 2 CITIES

*(click to enlarge)
With today's wiseguy rally, you can see it doesn't mean a thing in the scheme of things.
But we one of 2 things, a continuation of the topping process, staying withing the 10K area trading range OR
we are putting in right shoulder of a possible reverse head and shouders formation. The head being the 2002 v shaped low and then all that action in the 10K range on both sides. A breakout would send the dow to 12,000 IMHO

or higher, I mean if it doesn't, then the other side is f'ing oblivion as the historic liquifying act and fiat printing press have ran nonstop! AGAIN I repeat the FED added $59 Billion last week alone, they are expecting a big bang for their buck.

We have the Katrina Bull hype or not, all that spending next year. Are the traders positioning for that?

I mean, our job is not to fight the trend but to reveal it and ride it if you will while seeing the big picture, that we are riding down a one way road that leads to purgatory. You can manipulate and delay what will be for just so long.

Credit MUST continue to be expanded even from historic levels or bust!

But above, unlike going into 2000 as the MACD get rising, the MACD has been weak on this side of the bubble. ALSO, as far back as this chart can go you see the 20wk above the 50 wk EMA, all the way up to the top of 2000, the it broke down. It came back up during the counter bear rally of 2003, but now they are converging together, and it could break either way, but this action is weak, compared to prior bull and is something to watch closely.

Duratek