"There is repetition everywhere, and nothing is found only once in the world." Johann Wolfgang von Goethe
Hmm, I wonder if the above quote applies to the stock market and economics?
It's amazing to me how few analysts have learned to "read" the story in the averages. Analysts today spend most of their time talking about tapering or whether the debt ceiling will be raised, or whether employment will pick up.
I've spent the better part of my life studying the action of the stock averages in relation to their forecasting abilities regarding the future path of the economy and the stock market.
Along these lines, let's look at the D-J Industrial Average chart below. We see a remarkable series of four rising bottoms, which implies accumulation at progressively higher levels. Then we see three rising tops. In all, a bullish pattern.
But wait -- before getting too bullish, remember that according to Dow Theory, the ... Log in or subscribe to continue reading.
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