The 2-year Dow chart indicates a W shape bull market forming from peak to trough over the next 30 - months. Not to be confused with the lagging economic indicators that would suggest an L shape trading environment. The influx of electronic trading matched with heavy global institutional capital inflows are conducive for mass market liquidity trading, versus previous eras of investing.
Hence, the landscape is shifting from an investors market to a traders market that will consist of far greater swings in the indices. Consider the Dow Jones all time high of 14,164 October 9, 2007 to its low 6,547 March 9, 2009. Today the Dow closed at 8,721+221 up 33% from March alone. This should tell you something going forward, don't be afraid of 30+% market corrections. 30 is the new 20, enjoy!
COPYRIGHT TRADERVSMARKET @ 2009
Do you feel the markets will continue to rise? I feel they are much higher than they should be and see a downfall in the next 9 weeks.
ReplyDeleteI do agree a healthy market correction is in order of say 5-10% from these levels. The markets appear to have broken away from panic selling, to buying the dips. I expect the market to stay on its bullish trend-line through Dow 10,000.
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