Dow Destruction & Gold Super Highway
by Morris Hubbartt
Sep 23, 2011
Our leaders’ answer to all economic problems is printing and lending more money. Is that a solution, or a denial that there even is a problem?
Our own fed promises a dollar-destroying low interest rate, for another two years. Overspending governments are not interested in a strong currency. They want your currency and purchasing power to be as weak as possible.
Technically, the counter trend rally that the dollar is enjoying looks to be headed into mid-October. The move looks to be an oversold bounce and nothing more. A byproduct of the strengthening dollar is a stock market that is in great danger.
My technical work continues to point to new lows for the stock market with a mid-October timeline, and that fits with my dollar bear rally timeline.
Stock Market Destruction Chart
The stock market has pretty much given me what I had expected. On June 24th I issued the headline, “Gold Stocks Bottom While SP500 Tops Out.” I targeted the 11,700 area for the Dow, and that target was acquired in early September, and the rollover I projected from there occurred on schedule. What is the next move now?
As the dollar finishes its bounce, it’s likely to continue to tear up the stock market. The stock market has a queasy feeling to it between now and the middle of October. I see new lows coming to the stock market, likely towards the 9500 area, or even a tad lower. The target of my highlighted head and shoulders formation would put the market in that general area.
The numbers I’m talking about for the Dow cannot help but scare investors who remember the destruction of 2008. With real terror, so comes your greatest opportunity. I’m watching my internal sentiment indicators for the stock market very closely, to identify the area of greatest opportunity for you.