Dow 13,750 Still Targeted But...

Ah, there's always a BUT isn't there? As noted previously, there are many obstacles in the way of the Dow's climb, notably the down trend line from the October high. Today bully is flirting with this line but it is Fed day and well, ya know, things have a way of getting woogly on Fed day. Also, Dow is merely retracing the over done and hype fueled decline of January and March's double bottom until proven otherwise (bear market rally).

What the stock market has going for it in my book is the projection of higher levels off the bottoming pattern nominally as well as the nice inverted H&S in the Dow-Gold ratio with the neckline breaking solidly as I type. Remember, if you're a gold sector investor and you identify the sector as being in a legitimate long term bull market, you do not want to see gold exploding higher along with oil, copper, wheat, what have you. You want the casino patrons bled out with extreme prejudice and that is what the Dow-Gold ratio is currently doing. By my eye it is now approximately 2/3 to 3/4 of the way there. By the way, I am seeing the same inverted H&S in the 2 year yield, the Hong Kong market (which I am long) as well as several other areas. Very interesting and it will be fun trying to correlate and make sense of this activity going forward.

I am seeing a lot of stuff that makes me want to post more, start a newsletter and what have you, but I still do not have enough time. It's coming though. I think. ;-)

Anyway, Dow chart for your review.

Edit (3:12) "Rut Rohhh!!" say the bulls. Head fake back below black line.