In Monday's half-day trading, the Dow ended down 52 points but still far above the 50% Principle level of 10,356. So the situation remains bullish under the 50% Principle. The Transports, which hit a new high unconfirmed by the Industrials, fell 21 points on Monday.
The normal and expected reaction to what is going on would be -- "Is the stock market crazy? The fiscal cliff is just around the corner, and the debt ceiling must be raised shortly -- and the market remains in its bullish mode. What the devil is going on? Has the stock market lost its collective mind?" And the Russell answer is, "No the stock market is made up of the collected wisdom of hundreds of millions of people -- all of them talking with their money. Let's reserve judgment and see what the stock market is telling us.
Ben Bernanke's "Operation Twist" was calculated to levitate ... Log in or subscribe to continue reading.
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