Dow waves roll on…

091022induSince March 9 the Dow has made an orderly march upwards, if not an April upwards.  Wave studies are always interesting so it is interesting to observe what is happening here in the march, and also in this October.

The first wave  rolled 47 days, and was followed by 23, 10, 14 and 12 (current, not necessary finished) days.  As previously observed these wave patterns have taken the form of surge, drift, flush and surge.  Currently we are wavering between drift and flush.  So some flushing here would get rid of  nervous arrivistes and encourage those shifting uneasily on the sidelines hoping for a major downwave.

In the meantime here is what we think is happening:  Nervous money is trickling back into the market bit by bit.  This is positive.

And we are really desperate for some well chosen shorts to keep our portfolio naturally hedged.  We’re beating the bushes (the George sr and the George jr bushes) for them.

And remember — when in doubt the trend tends to continue.

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