The Dow’s 142-point gain on Monday was more or less obligatory, since bulls are wont to begin each new week with a show of strength. I hesitate to call it bravado, since there’s nothing to suggest any lack of confidence beneath the surface. The 25,215 close left the blue chip average about a thousand points beneath my current rally target at 27,251. As always, we should be prepared for seemingly ambitious targets to be achieved more quickly than in days of yore, when stocks occasionally sold off for more than a day or two. You’d have to be and old-timer to remember those days, since the new normal is just up, up and away — and no looking back.
An Old-Timer Remembers…Corrections
- January 23, 2018, 10:34 am
The Dow Jones UTY Index is now bottoming out over the days ahead, after a 13% decline in value over the last 2 months. This will lead towards a high in interest rates for another long protracted decline downward in yields over the weeks and months ahead.
The UTY also, suggests that the INDU and SPX index is now rounding a valued level, after an all time extreme positive sentiment high, higher than the 1987 time period.
This turn will be in place with a continue DXY downtrend and a currency dislocation over time.
Have a great day Rick.