INDEX PRICE CLUES

POSTED: March 28, 2009

How Now Mr. Dow?:

The time has now become irresistable to take another look at the holy stock market index, the Dow Jones Industrial Averages (DJIA).

Why irresistable?

Well, the pundits are at it again and all the news services are going ga-ga over the "gains" in the DJIA over the last weeks.

Has the "Obama phenomena" cured the economic ills of the last two or three decades in only the last two months?

Well, to read or hear the news services, you might think so.

Again, we shall take our own advice and draw back from the present news headlines and emotion and view this stock market index from a safe distance in Time.

Glance at the chart above, take a relaxing breath and dare to speak what you instinctively know:

The Dow is still in decline.

The downward trend is still intact, just like when we last examined it several weeks back.

When the talking heads speak of "gains", what are they talking about?  

Let me qualify what "they" consider to be "gains": Gaining 1400 points after losing 6,500 points!!

HELLO!!?

Turn off the TV and observe the Golden Line of Intention that we placed on the chart.

That line represents where we believe the major players are betting heavily on where the market will be going long term.

Oh, and "they" would like you to start "buying" to drive prices upward so they can go short and make even more money from you - the small investor

It would be foolish indeed to buck a down-trend of this magnitude though.

So, are you going to believe your own eyes and what you see in the long-term chart above or are you going to tune back into CNBC to let them tell you what is "real"?

Your choice, as always, but, now you know the other side of the argument for a change.

We'll look at what's hot in the commodity markets next post (possibly tomorrow), just to see what illusions we can uncover in the "smoke and mirrors" trading pits. -George

 TAGS: DJIA, Dow Jones Industrial Averages, Dow, Indexes, Dow 30, Dow trend, DJIA trend, stock market index, stock market, stocks

Here's the Index Price Clues to the longer term Dow Jones Industrial Index (DJIA).

It shouldn't be a surprise to see that the True Trend for the DJIA is DOWN, although, surely you've heard and read a lot of market "experts" tout buying the market now, while its "at the bottom" (which they somehow think has already happened).

Far better in my opinion to know that the True Trend is Up FIRST, then buy based on what can be SEEN, rather than by what is HEARD or THOUGHT.

I'll wait until the market prices rise above the Golden Line before I change my mind about Market Direction, thanks.

An uptrend, when it happens will be long-lived and there will be plenty of time to get on board.

So, what's the rush? - George 

***IF you're interested in learning how to do this for yourself in the Markets you choose to follow, contact me by e-mail to get on the list.

I'm working on preparing the material and I'll contact you when its ready, you can contact me by e-mail at process@theshamanstent.com

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*NOTE PLEASE: Remember, these chart posts & analyses are for entertainment or educational purposes ONLY and only express my opinion and are not a suggestion to BUY, SELL or even trade at all. All trading is RISKY and you should consult a professional. I am merely a student of the markets and Mankind and not a licensed advisor or broker.