Saturday, October 06, 2012
IS THE DOW HEADED FOR NEW ALL TIME HIGHS?
This pattern is call a Broadening megaphone, and after it completes is Bearish, that is well above where price is today.
Is the current FED policy of no options for returns enough to keep money flowing into stocks and keeping volitility low?
Is the job market gaining momentum? Friends, it may be that none of this matters, all that matters is the people who can move the markets, believe there is no worries of a serious decline at this time.
I can say to you , well maybe this is not for me.....but I try to present all possibilities. This does NOT change my view of how it all ends, BADLY. But sometimes you have to take what they give you, and since 2009 they been giving a lot.
43 months into this CYCLICAL BULL means it may be running on borrowed time. Tops seldom give out shouts to get out, and take time to form....no guarantee history repeats.
Whether Transports ever confirm the new Dow high in the short run won't matter, but it does certainly give a warning, should that divergence continue that something is wrong and buyer beware.
Posted by Marc R at 4:50 AM