Is It Déjà Vu All Over Again for the Dow
Adam Hewison at Market Club always puts together excellent videos regarding the analysis of all kinds of asset classes. Here is his newest one regarding the Dow. In particular, he is noting the the comparison between the move down and the retracement of the Dow in 2007-2010 to the behavoir in 1929-1933. This is nothing new, I have brought up the comparison several times myself. But I am a nobody. Adam Hewison has been trading for many years and has been calling trends sucessfully for years.
Now, don't take this out of context. He is not saying that we are going to get the exact same move or even a similar move. He is just noting many of the similarities to the price behavior. And like I pointed out before (What To Look For As a Long Term Trend Change Confirmation - http://caps.fool.com/Blogs/ViewPost.aspx?bpid=330257) ***IF*** Jan 2010 was the peak retracement and we have a massive bear market ahead of us, it will need to be confirmed. And that link shows you what to look for (in my opinion) for a trend change confirmation.
But what Adam is suggesting, just like I did last week Taking a Step Back: The Case for Staying Bearish for the Near Term - http://caps.fool.com/Blogs/ViewPost.aspx?bpid=338359, now is the time to start thinking defensively. Odds favor a substantial pullback for the next several weeks and I don't believe what we just experienced was the end of it.
So do not dismiss out of hand any comparisons between the Dow now and the Dow of 1929. Please watch the entire video, it is definitely worth a couple of minutes of your time
Déjà Vu Dow
Is It Déjà Vu All Over Again for the Dow?
In today's short video we examine the crash of 1929 and the similarities to today's Dow. This video is not meant to scare anyone, but to educate investors and traders of the possibilities that may exist in today's market.
We could be, repeat, could be very close to a tipping point similar to that of 1930 when the Dow had ended a 50% correction to the upside. I invite you to watch my latest video and see what makes sense to you.
As always our videos are free to watch and there are no registration requirements. If you agree or disagree with this video please feel free to comment on our blog.