momomiester

Dow Heading Toward 5,000 and 'Permanent Capitulation'

If everyone expects something to happen such as a capitulation, how is it going to happen? Usually, capitulation is a panic. And panic is a reaction to fear from an unexpected event. The markets been down for a year and many sectors have capitulated. People are crushed to the point they are not even looking at their portfolios so I doubt there is going to be more of a shock to capitulate like everyone expects.
The pattern might be much like a crushed stock, straight down then sideways and a basing pattern followed by an upturn. Also, look at the VIX. It has been sideways due to not many people buying puts down at this level.
Also, if your not dollar cost averaging down here, how do you expect to get in when it turns? The initial move will be huge and most gains will be realized by those who have been buying and averaging.