Bull gores doubters…

As is seen in this chart the dump-bump-dump pattern has been completed.  A buy signal for those who have not already bought or added on.  Another signal will occur when the high is taken out.  Taking all these signals would be the mark of a very aggressive trader, and taking none of them would be perhaps too conservative.  You will remember our dictum that even conservative investors should add on to profitable positions in long strong trends.  And what we have going here is a long strong trend.  Readers will also remember that we never forecast or predict.

Now let us do something which looks like forecasting, but is, in reality, nothing more than the exercise of a technical analysis tool for predicting market targets.

There is a technique for analyzing how far a market is going to run, called the Rule of 7.  Space does not permit the exposition of the method here so we will only present the results.  Wave 1 was 50 days long, 15.25% wide, and 1515.21 points fat.  Running the Rule of 7 on this wave we get the following targets:  phase 1 12587.94; phase 2 13466.76; phase 3 15239.56.  There we said it but if anyone accuses us of predicting we will deny every word.

And in truth, while we exercise this interesting drill we will now ignore it and do what we always do:  do what the chart tells us to do right now, not what the chart says will happen in 6 months.

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