I am going to post a chart here which should give you a rock solid dose of long term thinking. Ponder for a moment your long term opinion on the market.. do you have one? Bearish, Bullish or in between? It goes without saying that a fairly confident long term forecast can help so many of your trading decisions between now and the end point of your forecast…

But a long term forecast is extremely difficult to gauge with accuracy for the same reason that a long term forecast of weather patterns is just as difficult… However, I do believe that the market is easier to forecast on a long term basis than the weather :) .

The chart at the below link is one I made of the Dow Jones Industrial Average.

CHART

Note that the Dow Jones Industrial Average has been up until TODAY in a sideways basing pattern with 2 FULL YEARS of CAUSE. We also have a large symmetrical triangle p

I just wanted to say a few words about the general broad market (Dow, Nasdaq and S&P). I will keep it short, but felt it was important to mention for the simple reason that knowing the primary direction of the TIDE in my experience is very important for the individual trades and individual stocks. If you have the TIDE on your side then there are much better odds that the individual trades or setups will work out. Yes or course it is always a trader’s market and there is always a trade somewhere, but it does not hurt to have the 800 pound gorilla (broad market) as your body guard.

I have been following the S&P 500 closely during the last few months and all the other major indices. Anyway the bottom line is that all of the indices are OUTSTANDINGLY BULLISH! Even now as we are at the 52 week highs, I see bullish breakouts in the indices and powerful sustained trends UP in the major averages.

The reason why I am mentioning this is now is because if I have g

I still think a huge move is coming for the Dow Jones Industrial Average. Not a one day wonder, but more like a steady sloping upward trend.

There are a huge number of buy stops just above 11,000 , that once activated will send the market a lot higher than most people probably believe at the moment.

The chart of the Dow since 2000 is quite compelling. The structure looks supportive of this type of move. But here is the kicker, although we will see very large numbers on the Dow (12,000, 13,000, 14,000, 15,000 ….) I suspect by the time we get there inflation will be worse than it is now. So the large numbers may be deceiving.

Anyway, here is an interesting link I found from Barton. He writes and charts about the Dow, Nasdaq and S&P. Needless to say I agree in good part with some of his arguments.

Barton’s Asian Stock Market Charts

Coca Cola Company about to enter new bull market
at 2008-07-28 12:07:49

For about half a year I have been watching and observing the Coca Cola stock price. Needless to say this is a very slow moving stock and for good reason, it has 2.25 BILLION shares in the float. Definitely a beast or dog to the hot blooded trader. However, what I am about to tell you may change some of that perception.

New bull market you say? But why?

I am talking strictly from a technical perspective ( as usual). The fact is that Coca Cola stock has been in a downtrending channel for the past 7 and 1/2 years. In other words this ‘famous’ stock has been in a severe bear market for quite some time. When I see a stock or index in a bear market for that long it usually starts to get my attention. The act of any security going down persistently for this length of time slowly creates a better risk reward scenario. The better risk reward scenario really co

I have written about the Dow Jones Industrial Average before. I also made a gutsy prediction that the DJIA would hit 14,000 by February 25th, 2007 . I still stand by that forecast.

But first things first. Clearly in order for the DJIA to get that far, the first thing it has to do is break out to a new all time high. I believe this moment is rapidly approaching. In fact it may come sooner than we think. We may even see DJIA 12,000 by the end of April. I am expecting wide price volatility and ‘heated market action’ in the DJIA.

A new all time high for the DJIA is a big deal because it represents to a large degree the general publics indicator of the ‘market’. Plenty of other indices have hit new all time highs but the DJIA has lagged. Could the DJIA hitting new all time highs be the final piece of th