Posts Tagged ‘Dow record’

Despite record high Dow … I’m still a bear.

March 6, 2013

Yesterday was a day of stock market joy … the Dow hit a new high water mark.

Since halving itself during the financial crisis, the market has more than doubled … recouping its losses … and more.

But, what about the the technical factors … just reading the charts.

Yesterday, we posted the red section below … and asked the question: see the pattern?

To me, looks like we’re approaching a cyclical peak.

image

Today, look at the black line … and the trend line that I’ve added.

The chart deflates the S&P 500 … adjusting for inflation.

Hmmm.

Looks like the real value of the S&P 500 has been trending down for the past 15 years or so.

Think we’ll defy the trend line and keep heading up?

I’m betting the under.

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Disclaimers:

  1. I don’t give investment advice … I just observe stuff.
  2. I’m on record having predicted a significant market drop during Obama’s 2nd term

I’m still holding my ground.

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