Venkata Subbu's  Instablog

Venkata Subbu
Send Message
Investor and commentator
My blog:
Politics and Economy
  • A Light Hearted Look at the Technical Charts 0 comments
    Jul 25, 2011 4:12 PM
    A Lighthearted Look at the Technical Charts

    September 24, 2010

    From: xxxxxxx
    To: yyyyyyy
    Subject: DJI Head and Shoulder

    I took a look at the DJI chart and OK, there is one there. You really have to bend stuff to make one on the S&P. So here is my confident(!) reading of the economic tea leaves for the next few years:-

    We muddle along until approximately March 2012, with inflation becoming the driver for stock prices. So real returns are low. Around this time frame, the S&P peaks around 1350, and the DJI reaches the edge of its right shoulder. One or more major Dow components winds up in difficulties. Obama continues as president, and so by the end of the year (or by April of 2013) the Dow component declares bankruptcy. Things happen too fast for the Dow board to toss that component off of the Dow average, and the Dow ends that year around 6000. Both the S&P and the Dow continue to drop with the Dow reaching bottom at 4000 and the S&P 800 around April 2014. The Dow snaps back up to 9000 by 2015.

    Oh, also, MSFT gets whacked by some accounting scandal, ORCL buys HP, and Larry Ellison is recognized as king of a minor country by the UN. Meg Whitman, frustrated, unleashes a nuclear bomb on Sacramento, and California breaks away from the Union. Whether Meg and Larry become related is an open area of 'future' research........

    Disclosure: I am long SPY.
Back To Venkata Subbu's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.