Yesterday's decline might ordinarily be accepted as a mere dip in the market because the market was simply overbought and in need of a correction. HOWEVER, I take yesterday's Dow's plunge seriously. The reason I take it seriously is because of classic Dow Theory.
Transports (weeks ago) advanced to a new all-time high. That high (I call it a primary high) was NOT confirmed by the Industrial Average. After many days of "trying," the weaker Dow was unable to confirm the Transports -- thus we experienced what I call "a primary non-confirmation." Other bull markets have ended in this way.
Meanwhile, my subscribers and I are on the sidelines watching the show. The question is -- what do those people who are holding stocks (I'm not talking about gold or gold mining stocks) do? This is a difficult question. If I was holding any large amount of stocks, I would probably ... Log in or subscribe to continue reading.
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