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Tuesday, 28 July 2009

Dow theory buy signal redux

I posted quit a while back about a DJI theory buy signal. Well the DJI took out its Jan 6 high and closed above that dates close as well. Now we need the transports to confirm and when/if it does I would suspect a pullback is in order as a lot of fuel and energy has been spent. The bull case will be made and it will take a few months to energize the markets, but once that is complete its on.
On the other hand we could get a glaring non confirmation and that would be the final nail in the coffin. I suspect they would try and keep prices high while they distribute the shares to the retailers, before everyone heads for the exit at the same time.

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