Archive for January, 2017

Dow 20000. Major milestone on steroids…

Posted on Jan 25, 2017 by .

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0125spxpnf

http://stockcharts.com/freecharts/pnf.php?c=%24INDU,PWTADANRBO[PA][D][F1!3!!!2!20]

We wrote a letter a few days ago — don’t wory you didn’t see it becuse we didn’t send it.  The title may tell you why:  “If there’s nothing to say, don’t say it.”  In short market action was so boring that there was nothing to say, so after admitting this we just shelved the letter.  Which is replaced by some big news — the Dow cracked 20000 — and not only that, it did it in the shortest time period in history.  There may be something to worry about there — but more of that later.  Here is the chart of that:

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Dow 20000. Gold at ??

Posted on Jan 09, 2017 by .

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0106spx

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p70142979615&a=266398464

The most natural thing in the world is for the market to balk at important symbolic numbers.  Thus the major indices are balking at the  present major step–Dow 20000, and a commensurate number in the S&P (more or less 2300 + or -).  The S&P has been even more balky because of its inclusion of several sectors the Dow ignores — health care, etc.    We added on a very small position, while recognizing it as a rank speculation.  More rational investors will not add on or go all in until the upper trendline is violated.

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