Monday Dec 5 2022
As just about every momentum indicator RSI, MACD, PMO was topping on the daily chart, the WSJ announced that the market had re entered bull territory because it was up 20% off its lows.
Things are not that simple. The longer I follow markets the more obvious it is that most advisors have no methodology. They put 60% im stocks and 40% in bonds and buy everything under the sun in the name of diversity and just hope nothing blows up. This past year it blew up. INDU hit our 34,40 target and then some, odds increase that we have hit the end of Wave 2 of 3. We could have another short term high but either way wave three of three will take the markets lower.
We also pointed out that we did not have a new Dow Theory buy signal, the Transports did not confirm with a new high accompanying the DJIA.
INdeed Transports reversed a whopping 3.26% today more than double the DJIA decline 14%.
Dow World Industrials also did not make a new high.
NASD continues to be the weakest index leading the way down
Bonds are topping as are out closed end munis. Fold
/gold had a lousy day as well, down 28.30.
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