Dow –Technical picture becomes clear — as mud

Posted on Jan 29, 2009 by in Letters

Actually that's just your faithful correspondent making funny --what else can you do about the Dow?  Well, you could break down and cry, but then you might miss the breakout for the tears.  However there is some semse to made of the Dow pattern.  First of all, surprise, it is a sideways trend with a downward bias.  This is big news to our readers, we're sure.  So what do you do in a sideways trend?  Hold on to your positions if you're short the trend.  Make no new commitments (except as hedges, bottom fishing or buying lottery tickets, OR picking up stocks unjustly devalued on which you have expert or insider knowledge).  Or trade -- as in buy the bottoms of the ranges and sell the tops.  Buy weakness, sell strength.

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