Potential High/Low Targets for the Dow

Judging by the amount of shares that have changed hands by the price volume bars, we’re in limbo right now. If we can overcome the 8250 area with high volume then I think we have a shot at hitting 9k on the Dow, which would be right around its 200 day moving average. As bearish as I’ve been, I’m trying to see the trade from both sides. Day after day the market refuses to drop, which leaves me to wonder if we just may pop a little higher, squeezing the shorts even more. I’m by no means jumping in the bull camp, I’m just trying to speculate when this little bear market rally may end.

I’m content to sit on my cash until I see a decent risk/reward trade. Of course, we could be in the topping phase as we speak and about to fall into the abyss. If that’s the case, I see a retest of the lows coming. If you’re not familiar with these types of charts, check out Jake Gint over at iBankCoin as he does some good chart work.

Comments

[TheFounder:]

The party is over. We are heading down to retest.

Apr 28 09:13 AM

[Great Swami:]

Ditto, founder

Apr 28 09:19 AM

[joethebull:]

Bombs away...

Apr 28 10:56 AM

[Steve in TN:]

Thank goodness Cetin always appears when a few bearish comments are published.

Apr 28 01:33 PM

[joethebull:]

I wouldn't hope for anything higher than 9200, but we gotta go through a correction here first.

Apr 28 04:55 PM

[logicalman:]

whether cetin appears or not after bearish statements is not important...what is important is that he's got a pretty good batting average..i am with him until i have a good reason not to be!!!


On Apr 28 01:33 PM Steve in TN wrote:

> Thank goodness Cetin always appears when a few bearish comments are
> published.

Apr 28 09:31 PM

[williemo:]

Longer term cycles, per cyclical analysts, call for slight weakness starting month of May, with short term up during June, then steeper weakness starting July into mid Aug. It appears we could go as high as 8500 DOW now and sell off within the 38-50% Fib range to 7700-7500 to first of June, then make run for 9000 during June, to then drop at beg of July as 2nd Q earnings report, leading to possible test of March lows by end of Aug. In gen'l, am in agreement with author JP. I think the safer long trade is if and when we sell off in May to possible 7500 level, then short when reach close to 9000 after end of June. May not be perfect, but it seems probable, by many analysts' expectations.

Apr 29 02:54 PM

[montyman:]

Give it a rest already. Nothing to back-up your statement. I've been hearing comments like this for weeks now.


On Apr 28 09:13 AM TheFounder wrote:

> The party is over. We are heading down to retest.

Apr 29 11:29 PM