The Ghost in the Garden
January 5th, 2008
The all-knowing Chattering Class bombards us constantly with superficial analysis of the daily gyrations in the stock market. It is as though access to a microphone and a TV studio backdrop invest them with deep knowledge and magical insight regarding the next course of the economy and the markets. They focus largely on effects rather than causes in order to divine the future, and in doing so they fail to see the big picture. In its investment newsletter, CandleWave, LLC has called attention to the ghost in the garden: the bearish Head-and-Shoulders pattern in the Weekly charts of the Dow Industrials, the S&P 500, and the S&P 100. If this pattern holds true to form, we can expect the Dow Industrials to decline to about 11,100.
Entry Filed under: Miscellaneous