This week should be interesting, technically in the Dow Cash. A failure to settle above the 11350 level should open the door down to a test of 10,900 and then 10,700.
The over all intermediate and longer term trend remains bullish. Last week’s 2-year high at 11,454 was a victory for the bulls. A rally from the depths of depression this Summer at the 9600 level over the July 4th weekend, constitutes almost a 2,000 point rally… 1,854 points if you want an exact number.
I would argue, if Obama’s party had won the mid terms, Time or Newsweek or some equally important periodical would have had Obama riding a bull, hearkening the Obama rally.
In fact, if you go back to the depths of the panic in March of 2009 down at the low tick in Dow cash at 6469 on March 6, 2009, then do the 4th grade math to the recent Nov 11th high at 11,451… we have rallied 5,000 points….. Please go back through my posts. I called this rally way back when…The level of negativity was such that we simply had to rally. And the 4,981 point move,,, well that went largely un noticed by both the right wing pundits and the left wing pundits… 5,000 point rallies in the stock markets take 2 years. That’s too long a time frame for the target audience 3rd grade mentality to which the media panders towards.
A 100 point one day correction??? Well, that, my good readers, is greeted by panic from the TV and radio talking heads from Coast to Coast. I can’t be the only one who notices this… seriously.
In any event, I am still looking for a correction down to 10873 and then perhaps 10,694.
As for all that glitters being gold, look for a pull back to 1321 and the 1290. This summer’s July low at 1,155 looks like a great buying opportunity, 4 month’s later in the rear view mirror. A 269 dollar rally that takes 4 months is not as exciting. However, break 68 bucks of that 269 dollars, and do it in 3 trading days…. well that’s exciting news…
Good Trading
