DOW looking rather toppy

Discussion in 'Trading' started by No.Heat, Sep 30, 2010.

  1. No.Heat

    No.Heat

    Here's a monthly chart of the DOW 30.

    From a bear perspective it looks like its forming a right shoulder.

    From a bull perspective it could be a flag, except it would need to annihiliate the shoulder theory for this to be valid.

    Top to bottom of the pennant we got 61.8 at the right shoulder area which is added confluence for resistance.

    Bottloline is the 11000-11500 area is no picnic, a break out of that area could resume the bull market. A bull market based on hyperinflation and weak USD considering the economy does not support it (yet).

    On the other hand, I believe we are in a trading range and we will plot the dreaded right shoulder and dance inside the channel until things in our beloved country recover and give us a reason to break out.

    I got my money on the short side unless proven otherwise, if so I will gladly join the bulls but not until what has not happened, happens.

    Chart attached.

    Intelligent comments welcomed.

    No heat
     
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  2. charts

    charts

    ... :)
     
  3. The beauty or burden of technical analysis.

    Some see up, some see down, some see sideways.

    Pardon my friends but all I see is a bull birth that will never see 9000s for months to come, perhaps years.

    Im 100% invested into US stocks, so should you.

    ESD
     
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  4. blox87

    blox87 Guest

    Print enough dollars and the dow will be 20,000 in no time. :D
     
  5. Nexen

    Nexen

    Beautiful charts guys, thanks for posting them.

    First useful thread I read after browing through dozens.