Quick Post: February 26th, 2009
February 26, 2009 – 12:50 pmAs most of you know by now, the dow has broken 2008 lows, but the larger picture is what we need to be paying attention to. In all honesty, the S&P 500 is a much more accurate indicator of the economy, but people love the dow for some reason. For those who follow me regularly, I have posted th chart below multiple times in the past to stress my theory of 6000-6500 dow. Technically, this is a very ugly chart and there is no real strong support level with the exception to retracement. There are extremists out there who have predicted 3500-4000 dow, but psychologically, I think wouldn’t be allowed to happen (though it could!). I bring this up because an analyst on Fast Money mentioned the set-up below and if the completion of the double top came to fruition, technical traders could set off an avalanche. (The analyst used the S&P, but I know you guys are tired of my S&P charts)
Another big story the past few days has been the move on gold, which has taken an absolute nosedive the week.
This has been beautiful for my Barrick Gold (ABX) short.
2 Responses to “Quick Post: February 26th, 2009”
i personally think the dow will break 7000 tomorrow if the fear continues gold will rise again i am definitely NOT a gold bug i hate precious metals always have but if the indices continue to fall i am afraid gold will rise just waiting a bit to short the GLD i mist it the first time
By john on Feb 26, 2009
this is my best year ever even better than 08 all my predictions are dead on
By john on Feb 27, 2009