Friday, October 05, 2007

Third phase of the stock market

I envision the housing mess slowly being resolved. I see the "cheap" US dollar rendering US manufacturing very competitive (at last). I see world liquidity staying at high levels, and I see a period of coming extraordinary prosperity. In the meantime, with communication and computers increasingly available, the downtrodden populations of the world will see the benefits of freedom or at least the benefits of free enterprise.

Note that the Dow is pushing subtly higher and higher. Where's it going? It's going ever closer to the "big show," that's where it's going As a matter of fact, I believe the Dow is leading the way to the "big show." Yes, the Big One, the mega-third phase of this bull market lies ahead. It may take into next year, but it's a'comin'. So hang on to those Diamonds (DIA).

How about Dr. Copper? I haven't talked about this "international barometer" of world health for a while. As a matter of fact, Dr. Copper is pressing against its ceiling, the ceiling being outlined by that extended horizontal blue line. China is a major user of copper, and so is most of Asia. If copper still possesses its barometric properties, then the world economy continues to be in good shape -- actually in better shape than the US is in, since the US is still wrestling with its housing "sickness."

From: DowTheory

1 Comments:

Anonymous Onediy said...

What do you mean by housing sickness? I think us economy is still strong enough for the number one position is the world. And what will you say about the bull market now. Do you still suggest that we should hang on to those diamonds (DIA)?

10:01 PM  

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