DOW LONG TERM

Dow closed below its 200 month MA .....eve of destruction. Equities bottom long term when private equity starts takin conpanies private, the ROE on stocks is higher than the divvy on the corporate bond, and price to book is bout 1....Till then tradem only. Trade Safe

Dow closed below its 200 month MA .....eve of destruction. Equities bottom long term when private equity starts takin conpanies private, the ROE on stocks is higher than the divvy on the corporate bond, and price to book is bout 1....Till then tradem only. Trade Safe

Many indicate DOW 8000 as a support point.
It has bounced off this support level several times.

Friday it closed at 8000.86
Talk about a line in the sand!

oh yeah: now this is gettin' good. not just a crash! ... DESTRUCTION!

Edited by humble1, 31 January 2009 - 09:51 AM.

Dow closed below its 200 month MA .....eve of destruction. Equities bottom long term when private equity starts takin conpanies private, the ROE on stocks is higher than the divvy on the corporate bond, and price to book is bout 1....Till then tradem only. Trade Safe

Great post. You will see this happen as soon as the banking system gets itself in order. That's where you will see a bottom...companies will go private and there will be dramatically increased M&A activity. The key to the whole situation is the banking system.

We live in a FIAT world so the banking system is VERY EASY to fix. It's all about timing and the amount of monetization desired. You can bet your last dollar we will be in a bull market in stocks NLT 2011...after all, the next election is 2012. The issue is timing. FWIW I think the next bull market will create inflation so there has to be some degree of timing involved. The next 10 to 15 years will be very similar to 1966 to 1982...rhyme in some way. I think we are already into that parallel period and have been for a few years, minimum.

Humble who said anything about a crash. Market could rally 20% over the next 2 months or not. Its a traders market here. I m not going to spoon feed you, but check the history on the DOW(N) trading beneath its 200 month. Typically becomes resistance during the following economic contraction. Maybe I should have put a ? in my original post. Don t be suprised to see DOW 4-5000 before this bear ends. Trade safe

merciless: yes, that's why i said "worse than a crash" as in "eve of destruction", which sounds like not JUST a crash to me ... you are entitled to your opinion, of course. i guess it is hard for me to imagine anything good happening after the "eve" of "destruction" passes amd since we are on the eve ... well, nevermind ... ™

Good to see you around Merciless.

Told ya I d be back after Bear went to zero.