I have been reluctant to heavily short this market without evidence of a failure of the Plunger protection team (PPT) to hold it. I said in an earlier post that 12000 on the DOW was probably the line in the sand. I concentrate on the DOW not because it's a true stock market but because it's rigged. The DOW consists of a mere 30 stocks 25% of which are the financials the Granddaddy being Goldman Sachs. Goldman Sachs can push the DOW up all by itself simply by buying it's own shares. It's Goldman Sachs that the PPT operates through during regular market hours, buying through it's brokers from money electronically deposited in off shore accounts. The point is we are a lot closer to 12000 than I ever thought we would be. As you can see from the chart (Link 1) the DOW has nosed over and is diving down. It actually broke through 12000 to 11953.70 before coming to rest at 12099. Pay no attention to the overbought stochastic. The price data has now biased the indicator to the overbought condition and it can stay there for years. Since the truer stock market is the S&P500 some technical analysis on it is due. For that see link 2 for an excellent treatment by Clive Maud.
Link 1:http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=djia&time=8
Link 2:http://news.goldseek.com/CliveMaund/1200953160.php
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3 comments:
Goldman Sachs is not in the Dow- How hard is it to look up the 30 companies in the Dow to notice this?
Goldman Sachs is not a constituent of the Dow Jones Industrial Average. See http://www.djindexes.com/mdsidx/index.cfm?event=showAverages
The DOW consists of a mere 30 stocks (25% of which are the financials the Granddaddy being Goldman Sachs).
I read it to say Goldman Sachs is in in the banking index.
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