Summary: Continue to maintain a LONG/HOLD position.
1/21/2014 – While there was a 200 point swing on the DOW, the market ended up relatively flat. With the DOW closing -44 points or (-0.27%), S&P ending the day flat while NASDAQ was up +0.67%. Just as the markets ended up being all over the place, I am beginning to see a number of divergences appear in various sectors of the market (including international markets). This should come as no surprise to us. This is consistent with our work indicating that the bear market will start over the next few months.
The market is topping out and this is what it looks like. At the same time, I did notice a constant stream of “Bear or Short” articles over the weekend. Most talk about the market being overvalued, overbought and is set for a fall. Most definitely, that is true. However, open bearish discussion clearly suggests that the market hasn’t finished going up…..just yet. As my earlier forecast indicated, a 700 point rally into 17,100 on the DOW is highly probable. As such, everything remains consistent with our overall analysis to maintain our long position for the time being.
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Daily Stock Market Update, January 21st, 2014