November 18, 2018 | Believing Our Lying Eyes

Elsewhere on the home page, I’ve made much of the fact that the Dow Industrials mechanically tripped a ‘buy’ signal last week. This seems incredible, given the blowback U.S. stocks are getting from a weakening global economy and a domestic downturn that threatens to turn boom to bust in housing and autos. Putting all that aside and focusing simply on the visual picture shown in the chart — the most recent phase of the long bull market — what do you see? Personally, I have little difficulty extending an imaginary rally to the 26,996 target. Harder to envision — and this is speaking from a purely instinctual point of view rather than a technical one — would be a serious slide down to 23,000 and beyond. I’ll remain open to any and all possibilities nonetheless, relying solely on impulse legs to instruct me concerning the mood of investors, and of America.
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Rick Ackerman November 18th, 2018
Posted In: Rick's Picks