Dow coils. Snake market. Getting ready to bite Santa Claus

Mark Hulbert has recently noted that his best performing newsletters (he doesn’t track this one) are tending bullish, while some good performers are forecasting more downward action.  Which of these forecasts is correct?  Which of these forecasts is wise?  The answer is neither and neither.  It never ceases to amaze us that analysts will endanger their proboscis to flying eggs.  Not that we haven’t had egg on our face frequently, but as the Spanish say, son casos completemente distinctos.  The truth is this:  the market is at the moment sideways and coiling.  The range is tightening and the near term direction is most likely more sideways.  The shortening of range may well result in some fireworks next week.  Next week is amateur week.  The real traders are in the Hamptons, Maine and Aspen for the holidays, so are probably unavailable to deal with any irrational exhuberance either way, up or down.  For most of our readers– investors and trend followers — these largely meaningless forecasts and speculations will be of only passing interest.  Speaking of speculation, which we will in just a New York Minute, we shorted the bonds which we will explain in a later posting.  We will also do some speculating shortly on investment strategies.  For this moment here is the Indu 


Price is stuck between 96353 and 7449 for a period (Dec 20) of 32 days.  Here is an oddity.  Since December 1, 14 days, there is no day outside the range of the Dec 1st day.  More indications to us that an explosion may occur here soon.  

But then, how many more shoes are there to drop?  (Said George, peeping over the top of the podium.)




This Post Has One Comment

  1. alain

    An explosion? Up / down? Nov 17 – Dec 22 trend line show an ascending triangle – bullish . Last actions could also be lead to a raising wedge – bearish. Weakening volume over the last week suggests preparation of something. What? I guess we can just guess here…

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