I listened to Michael Jenkins this morning from stockcycles forecast. He said " ask yourself this question: now that you bought Dow at 12,000 - what are you going to do with these stocks?" I thought it really summed up the paradox of the investment mentality of the heard. The main street investor thinks everything is in perfect order and maybe I am completely wrong thinking that it isnt. Either way, I will stick to my guns and say that we are about done on the upside and will see a move lower shortly, before the final push into november.
I entered into a short position in the SP500 and the Dow last night on the close as we hit the extensions from the chart you saw yesterday. Once the 1348 number was taken out, the market surged as expected to new highs and hit the 1.618 EXT perfectly, and a 1.272 EXT. I have attached the chart below so you can see what I mean.
The Dow Map for today is pointing to quite a reversal during the day. As I dont know if it will invert, I will stick to my short position and potentially reverse long later.
If you go to the analysis from yesterday, you can really see the value of the Maps. The gold market plunged and as the Map accurately predicted, the market recovered later in the day.
ANALYSIS
