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Bubble Watch - Maybe it only just started, Dow 50000 - Update 2
Created on: 8/7/2021 6:45:01 PM

bubble-watch--maybe-it-only-just-started-dow-50000--update-2A brief chart post of why Dow 45,000 to 50,000 is on the table.

Many are forecasting a blow off top for stocks. This is fair, and it has happened a few times before, one lead into 1987 (first chart below, see A)  and another into 2000 (first chart below, see B and C) Dow Jones market tops.

The Detrending Price Oscillator (DPO) indicator measures price away from a simple moving average in percentage terms.

POINT: In short it measures how far the rubber band is stretched. 


Lets look at the DPO indicator. Currently today's price position is at 3 (or 60%) this is equal to prior positions of 1 and 2 (first chart below). The DPO price (3) can move all the way up to prior tops of A,B and C, to X. If this happens, it will be equal to a Dow Jones price range of 44,000 and 50,000, see X??. This a percentage gain of 25% to 45%  (current Dow Jones is 35,000).

POINT: Investors will not want to miss out on these gains.


The red cycle shown on the Dow as worked very well over 100 years, please review the red cycle high during the 1987 top, this can happen again in 2021/22. History may not repeat exactly, but it sure can rhyme. 


Chart 1 - Dow with the DPO.

DOW 1




Chart 2 - Price bands


DOW 2



Divider




NOTE: Posts here are the lite version, more depth on each subject can be found via our RTT Plus membership.

Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to ride the change, after all these methods have been used successfully for 70+ years. This post is a delayed and small sample of what is avaliable to members. Sign up to enjoy the full service.


NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

..."The average chart reader is apt to become obsessed with the notion that the dips and peaks and primary and secondary movements are all there is to stock speculation. If he pushes his confidence to it’s logical limit he is bound to go broke."...

Jesse Livermore


.."It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong"..

George Soros



.."October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February."..

Mark Twain


.."The problem with socialism is that you eventually run out of other peoples' money"..


Margaret Thatcher

.."The stock market is filled with individuals who know the price of everything, but the value of nothing"..

Philip Fisher




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