Thursday, January 24, 2013

The Daily Outlook - $DJIA How High the Moon?

***** Today the $DJIA broke out of the current weekly trend and approaching the double top high of 13924 last seen 2007. What comes next is anyones guess but it certainly begs the question if we can keep this up much longer. We've been on this trend since October 2011 on the weekly and since 2009 on the monthly chart. In other words since the low of 6470.

Long has it been since I last heard of a retest of those lows. Possibilities existed but it never threatened once we were comfortably over the 10,000. Now that we are getting near to testing the all time high we have to ask, if it's possible to go higher. The answer of course is yes, especially if you look at the trendline and channels, but then we also must ask how fast was up because the reversals tend to be faster.

I suppose we all want the best scenario for everyone; companies, investors and the economy. Still, it is important to keep things in perspective. Realize that not all things can keep going up, except inflation and taxes, you might say, but remember that even those have cycles when some semblance of reason returns. Of course it also begs the question:  when one's in love, what is reality or perspective?

05. How High The Moon by Mel Tormé on Grooveshark

Happy Trading, Living and Dancing

The Daily Pick - $DJIA

 ©DayTrading with Anni 2007 - 2013 All Rights Reserved

No comments: