Dow, monthly'2, rainbow
Summary
For you regular readers out there, you will know I have been seeking the Dow 15800s for some months, and today we have seen it.
I am indeed now calling for 16k within the remainder of the year..and then 17k by late spring 2014. Frankly, those don't even seem overly bold targets. I realise the mainstream is most certainly not touting that high yet..but then..the mainstream is always lagging the 'reality'.
The old leader remains...strong
The transports has managed to comfortably hold the 7000s, and looks set to break into the 7200/7300s into early December. Certainly, 7400/7500 is the 'very best bull case' by year end, although I'm suspicious of a minor down cycle before year end.
Trans, monthly'3
I like the above outlook. Effectively, broad upside into the spring, then a major intermediate wave lower...before a final hyper ramp into 2015/16.
Looking ahead
Tomorrow will largely be all about the Yellen monster*, who has her onscreen job interview, in front of some US committee.
There is sig' QE, bears....beware!
*I should clarify, I will suffix Yellen with 'monster', as anyone who has ever supported the policy of negative interest rates - utterly destroying savings (and indirectly..all capital formation)..is an outright macro-economic 'monster'.
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So the market battles higher, and will probably continue into the late spring.
I sure ain't happy about it, but at least I will still have a trading account when the next intermediate top occurs. In the meantime, the remaining doomer bears should remain in 'survival mode'. In another 4-6 months, there will be even fewer of us left.
Goodnight from London