In Dow Theory terms, this would mean investing in a period of severe undervaluation and holding on to your stocks (or dollar cost-average into your portfolio) until the end of the bull market – such as September 1999 when the Dow Theory bear market signal was given -- and then stay out until the primary bear market has fully asserted itself. since then, I have maintained that … [Read more...]
Bear flag
The market is close to confirming a 123 bottom or breaking down from a bear flag. The conclusion to this confluence of patterns will be dictating trading over the intermediate-term. The market has spent the past six sessions of trading in a very tight pattern. for instance :The Dow Jones Industrial Average ($INDU), has been gyrating around the 12,600 level, plus or minus … [Read more...]