The yawning chasm…. yawn.

Posted on Feb 05, 2009 by in Letters

The long term chart of the Dow shows the market poised (like a porpoise) on the brink of a precipice.  (Attention:  awarders of the Nobel prize for alliteration!)  Well you have a choice you can either cry your heart out over the market, or have a little fun.  The long term chart here shows the black hole lurking beneath the market.  Two things are supporting the market right now--the faint hope that Washington politicians will stop playing ideological games and enact a meaningful jobs bill and bottom fishers who are inspired by prices they never saw before.  (As technical analysts know prices can always go lower--until they get to zero.  (See FNM and FRE and AIG.)  Seeing the faux conservatives posturing over the size of the jobs bill (after they spent a trillion dollars on a faux war in Iraq) is nauseating.  Be that as it may -- what does the analysis say about the potential downside in the Dow?  Looks like about 5600-5700 in this analysis.  Want to see some really low prices?

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