wrote in message
oups.com...
Truthfully, I have to say that after closely watching the stock market
(and my own investments in it) for decades, I have absolutely no idea
what the market is thinking short term (which explains the "maybe" ).
This is, after all, the same market that thought it was a good idea to
buy stocks when the NASDAQ was at 5000.


If you look at the ten year charts of the Dow and Nasdaq, put
em side by side, it becomes clear what is going on.
The internet in the 90's drove both to bubble. The
Nasdaq was driven much harder since the new
force, the internet, effected it far more. But both
markets have just completed a dead-cat bounce which
defines the end of the pattern. Much like the boundary
between two wavelengths. So each is about to enter
a completely new pattern of behavior. Right now is
the transition between the old pattern of the nineties
and what is to come.

The Nasdaq was driven into chaos and predictably crashed.
While the Dow bounced off the edge and recovered.
Typically, I would expect the Dow to outperform the
Nasdaq long run since a pattern that crashed typically
takes a much longer time to recover.

In any event I expect both markets to weakly repeat
their last pattern. Which is a great thing imo.


Jonathan

s






- Ed Kyle