Happy New Year 2012 to all Dow enthusiasts. Santa Rally did not come through but New Year's trade brought in the much awaited cheer and targets have been achieved as indicated in the previous update. Some more steam possible for another 150 odd points but wouldn't bet too much on it.
By and large, the top seems to be in place and prices should be able to start declining slowly but surely. For those who are long, some profit booking advised with trailing stop loss on marginal holdings.
A weekly close below 12200 will be the first sign that this was a relief rally as expected. As indicated in Dec 2011, full weakness to be confirmed only after 2 consecutive closes below 11500 and then it is adios to higher levels for a long time.
[Dow never leaves any gaps open for a long time on either side of price action unlike emerging markets!]
By and large, the top seems to be in place and prices should be able to start declining slowly but surely. For those who are long, some profit booking advised with trailing stop loss on marginal holdings.
A weekly close below 12200 will be the first sign that this was a relief rally as expected. As indicated in Dec 2011, full weakness to be confirmed only after 2 consecutive closes below 11500 and then it is adios to higher levels for a long time.
[Dow never leaves any gaps open for a long time on either side of price action unlike emerging markets!]
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