Mini DJIA Intraday Record High Review

At this time we have a mini type double top with one record high at 24,896. This is a far cry from when the DJIA touched 6500.  It has now gained about 383% and many experts say it will last forever, as we are in a secular bull market. They hated stocks in 2009, but now they love them. This has happened at every major top that we’ve had since the 2000 peak. That is just recent history, as the same mood was present in 1929! Each euphoric top produced a pessimistic bottom, before another major leg up occurred. “Is it going to be different this time”? I doubt it very much!

Remember that when you are listening to all those rosy fundamentals, think about it as,  “Fundamentals will always tell you the wrong things at the extremes”.

Short term this could still be just a correction, but even then the DOW could fall to a previous low of 24,200.  Right now the Mini DJIA is sitting at the bottom of the trend line, which technically will not hold when a bigger correction starts. At this point all we can do is take one new record high at a time, as record of records are being broken.

The Dow just set a record for setting records – MarketWatch

One day the DJIA will break all records of consistently lower lows. I found a very good chart that shows the psychological impact of the market swings from a very bearish low, then back up to a bullish top, and back down again. It is a very high quality chart, and all those readers that don’t understand the big swings I talk about should print it out in full color.

‎www.longwavegroup.com/market/charts/_pdf/Anatomy_of_A_BullandBear_Market_with_Money_Flow_0930.pdf

The Gold/Dow ratio is a bit more expensive, but not by that much, as it’s presently sitting around 19.77:1. It takes 19.77 gold ounces to buy the DJIA today. Below is another high quality chart, that shows this Gold/Stock relationships.

‎www.longwavegroup.com/market/charts/_pdf/DowJones_GoldPrice.pdf

As you can guess I’m bearish for the long term which could last until the 2021 time period.

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