STOCKS: DOW JONES INDUSTRIAL AVERAGE
Current Price: 8,468
We have been waiting for some time for the November – December lows in U.S. equities. We accurately predicted another wave lower after the election with a DJIA price target of 7100 - 7500 between November 22 and December 15, 2008. Our long-term DJIA trading model, which has had hypothetical gains for 43 consecutive years, went long November 24, and will remain long until April 2009. The declines in December should be viewed as opportunities to add to long-term buy-and-hold positions.
Long-Term Trend: BEARISH
The market is currently in a bearish consolidation phase of a long-term cycle. We project the long-term cycle low for the DJIA to be 5,500 - 6,000 in 2014. In this case, the short-term and intermediate cycles will develop and offer buy-and-sell opportunities within the longer-term consolidation cycle.
Intermediate Trend: BULLISH
The intermediate cycle has turned bullish from now until February 2010, with a DJIA target of 13,000-14,000. Begin positioning your portfolio for this intermediate-term bullish run. There will be short-term down cycles that will make you think the intermediate cycle is not real. Be patient and allow this cycle to form. These short-term pull backs are buying opportunities.
Short-Term Trend: BULLISH
The DJIA is in the process of bottoming. The next big move will be higher going into April 20, 2009 with the DJIA moving towards 10,000–11,000.