Currency Market News: Compare The Dow Of The Past To The Dow Of The Now

10, February, 2010

The Dow of 1929 took a dive after a brief recovery. That recovery was a retracement of 50% which thereafter got lower and lower with small recoveries until its final devastating low in 1933. Ancient history or a history lesson?

If we now compare that to the current situation the Dow has dropped from it recent high and shown a similar 50% retracement before starting its present decline. Is this shades of the past and of things to come?

Coins and banknotes, two of the most common ph...
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Consider this. The US and economic partners worldwide, have been throwing money at anything and everything in order to turn the economy around. This is not private money, its public money and at some point we have to pick up the tab.

The markets are extremely volatile right now and can turn very quickly on nothing more than perception. We have seen it before and we will see it again. Couple that with the fact that the “Baby Boomers” make up a large part of sums invested and if they start to move against the Dow we all need to be on our toes and very vigilant indeed. The Baby Boomer generation have a lot of clout in this market and they are probably looking for safer havens with retirement either upon them or looming.

Currently, if you take a look at this short video you will see that almost all the indicators are to short this market with the MACD being the latest indication of a further fall for the Dow. I have indications from the special “Trade Triangles” I use that confirm this.

I have no desire to be the bearer of bad tidings or to worry you unduly, I merely wish to alert you to possible danger. For me I have thought for a long time that there is a long way to go before we are out of the woods and back on dry land so to speak.  All in all however, it does appear that some very big chickens are coming home to roost!

Please be my guest and watch this very informative video so at least you are forewarned and so that you can make your trading decisions in an intelligent way.

All the best,
Good Trading,

Tom

Currency Market Updates are compiled by Tom Nadir.

The contents of this report are for information purposes only.

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