Apr

19

Dow Theory, from Kim Zussman

April 19, 2008 |

Now with a Dow Theory buy signal hit, big up week, breakout to many week high and >100d moving average, we get a real-time test of positive momentum in stocks.

We never hit the "bear market" cutoff of -20% from the October (all time) high. Presumably they will conclude this was a nascent recession doused out by Helicopter Ben; definitely not what NBER's Feldstein was calling for. Those hoping for a big drop to buy will have to wait for another financial bail-out, which won't happen until we are back to 1500 as everyone piles in afraid to miss the rebound.

Or not.

You can pick your poison or you can pick your antidote. But you can't know the antidote for your poison.


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