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Written by Site admin   
Thursday, 26 January 2017 14:45

 dow2000

Dow at 2000, will it become a distant memory?

We had the Trump rally part one following his election, which was largely based on 1. massive short covering by

those who assumed Hilary would win and were heavily short the market aka George Soros who reportedly lost a a billion dollars. 2. An assumption that Trump would reflate the economy by bringing jobs back to the the US.

Trump rally Part Two may not be the same. Up it just shot with a fanfare from commentators and pundits far and wide with Dow at 30,000 by 2020! the most optimistic headline I read this week. A look at the chart gave the buy signal three days in advance, but what now?

Alternatively the market has it all wrong. Just maybe we are about to see 'BTRSTF' again. Buy the rumour, sell the fact happens time and again. This time could the expectation of 20,000 Dow be too much to resist, up it runs onlt to find there are now more buyers?

What happens next....hold on tight as volatility will bring the unexpected.

 

From the blog

Now we know why...!

A picture tells a thousand words.

Lat month the Fed and Janet Yellen's comments, led the market to belive we were on the hawk trail to higher interest rates, 'normalistion' they called it. With that, commentators were falling over themselves to call the end of QE, actual tapering would be just a few months away...lardy dar, etc. Read more, plus the charts...

Read more...

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