"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10

Thursday, September 25, 2008

Rally likely

First off, no matter what the central planners concoct here, we are in a bear market and are likely to remain in one for a long while. Probably longer than if we just got the economic crash over and done with sooner rather than later. Trying to paper over problems just creates additional massive debits on future productivity. But that is our fine, terminal financial system going out in a blaze of glory; killing itself with its own medicine.

But really, I started this post with simple intentions; to show that stocks are likely to rally soon. So I will dial back in to being a simple technician and present the evidence in the form of Dow daily and VIX weekly charts. The pig looks ready to rally and could approach its bear market limits.