Fundamentals are what economists use to forecast and predict the future and this is why most economists suffer from recency bias and tend to extrapolate into the future.
Yet I keep reading the disclaimer that past performance is not indicative of future results.
So why do we have a situation where people believe what the FED or the mainstream media have to...
While the Nasdaq (NDX) and S&P500 Index (SPX) already closed below the EMA100 blue line, this isn't true for the Dow Jones (DJI)...
We can see that the DJI managed to stay above EMA100 last week and moving below it just today.
These indexes move together though, so the DJI is not really 'stronger' just a bit behind the rest.
With EMA100 being lost as support,...
In 1872 George Tritch documented a strategy for when to Buy and Sell stocks over the next 200 years.
While Buy and Hold performed better, it is pretty impressive that a strategy documented almost 150 years ago had a 91% hit rate.
The strategy also identified the (near) peaks of major crashes including 1929, 1999, 2007 and 2020.
Two key learnings:
1. Buy and...
IMO, what history teaches us, is that we dont learn from history. PUMP the markets!
This is NOT 100%, nor is the market.
Only in these times my Buy\Sell is on point!
When in doubt, ZOOM OUT!
STATUS: BULLISH!!! AF!
Q: Does 2029 look the like Great Depression 2?
Looks like major reversal is playing out as previously published.
Likely rounded top in play.
If breaks the neck line at 29K, then very good chance it at least touches 350 HMA at 27K.
If rounded top pattern plays out and 27 support breached...21 K could be potential target.
Good luck traders!
For those of you not familiar with Dow Theory. Here's a simple introduction. Nothing technical just a "welcome to" type of educational post.
Dow Has 6 Rules - these are known as the 6 Tenets
Dow is mostly known (most obvious - the Dow Jones Industrial Average)
Other tools and techniques can fit into the Dow Theory, such as Elliott and...
DJI is heading back to the humble trendline, should be ample support until Millenials start retiring around 2050, which then will be a near 90% drop...
should bounce solidly off the long term trend line and continue above the trend line for another 30 years...
The Nasdaq 100 has outpaced the Dow Jones Industrials for quite some time now. It appears that the relationship between the two indexes is reverting to the channel that it has traded in since coming out of the 2008 recession. It would appear that ETFs that track the Dow Jones index or industrial sectors of the economy may offer the best opportunity to realize...