Tuesday, July 24, 2012

Charles Hugh Smith: Before You "Buy the Dip," Look at These Two Charts

From Of Two Minds:

The first is a long-term chart of the Dow Jones Industrial Average (DJIA). The recent price history has traced out a pattern that looks remarkably similar to the one that presaged the crash of 2008, with one difference: massive quantitative easing and Eurozone bailouts pushed the B leg into an overextension. If this pattern is valid, the C leg down could be a real doozy.

http://www.oftwominds.com/blogjuly12/buy-the-dip7-12.html

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