Canestsal

NASDAQ ... if 2450 fails ... were heading to 2000 :P jmho

Josh

__________________
"None are so hopelessly enslaved than those who falsely believe they are free" Johann Wolfgang von Goethe

whizknock

Thanks Josh! I'm rooting for a break in support at 2450. I hope you & Nemo are on the sidelines & not getting hurt by this correction. Called my contact today to find out the status of my bond fund. I was unclear in their written material as to the frequency of dividends. It's monthly & better than I thought. Also it's benefitting from people shifting out of stocks. Not only did I duck the haircut my position is growing. I will swing back in to the mid cap growth no later than the middle of next month even if we're still in decline. We will get past this & the markets will continue up next year. Thanks again for your input.

capt_nemo

2458 is next support, if that doesn't hold then 2340, and if that doesn't hold, the big WHAZOOOOOOOOOOO level will be 2020. Man reality is going to set in , me thinks!!!

__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind.
Joseph Conrad,

Use your own mind on what to buy and sell!!

capt_nemo

--------------------------------------------------------------------------------

Dow Theory says sell
Commentary: All three Dow Theory newsletters I follow are now bearish
By Mark Hulbert, MarketWatch
Last Update: 4:35 PM ET Nov 21, 2007
ANNANDALE, Va. (MarketWatch) -- With the Dow Jones Industrial Average's finish on Wednesday below its August lows, the three Dow Theory newsletters I track are solidly in the bearish camp.
The Dow Theory, for those not familiar with it, traces to a series of editorials that appeared over the first three decades of the last century in The Wall Street Journal. Those editorials were written by William Peter Hamilton, then the editor of that newspaper, on the basis of conversations he had with Charles Dow, the founder of Dow Jones & Co., the newspaper's publisher. (Dow Jones is the owner of MarketWatch, the publisher of this column.)
Hamilton's editorials leave lots of room for followers to argue over the more esoteric points of the theory. But the general outlines are clear enough of what is required to trigger a Dow Theory sell signal:

1.
Both the Dow Jones Industrials Average and the Dow Jones Transportation Average must undergo a significant correction from joint new highs.
2.
In their subsequent rally attempt following that correction, either one or both of the averages fail to rise above their precorrection highs.
3.
Both averages must then drop below their respective correction lows.

Chart of $INDU
Step No. 1 began this past July, by the correction that began from that month's highs. Step No. 2 was satisfied during the rally that began from the market's mid-August lows, in which the Dow Jones Transportation Average failed to surpass its precorrection high.
With the DJIA's close on Wednesday below its August lows, Step No. 3 is now satisfied too, since the DJTA earlier this month had already closed below its August lows.
Why should you care about the Dow Theory?
One reason is that many investors pay close attention to it. I suspect that was one of the reasons that the DJIA seesawed all day Wednesday above and below its August closing low of 12,846. In fact, it wasn't until the final few minutes of trading that it became clear that it would close below that level, and thereby trigger a Dow Theory sell signal.
Why should you care about the Dow Theory? One reason is that many investors pay close attention to it.
The Dow Theory's popularity should trigger additional selling when investors currently on vacation return from their Thanksgiving holidays, either on Friday, or more likely this coming Monday.
Another reason to pay attention to the Dow Theory: Its long-term track record is good. Confirmation comes from none other than the Ivory Tower, which traditionally has pooh-poohed the notion that the stock market could be timed.
Consider a study conducted in the mid-1990s by three finance professors -- Stephen J. Brown of New York University, William Goetzmann of Yale University and Alok Kumar of the University of Texas at Austin. They fed Hamilton's market-timing editorials from the early decades of the last century into neural networks, a type of artificial intelligence software that can be "trained" to detect patterns.
Upon testing this neural network version of the Dow Theory over the nearly 70-year period from 1930 to the end of 1997, they found that it beat a buy-and-hold by an annual average of 4.4 percentage points per year. Their study appeared in the August 1998 Journal of Finance. End of Story
Mark Hulbert is the founder of Hulbert Financial Digest in Annandale, Va. He has been tracking the advice of more than 160 financial newsletters since 1980.

__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind.
Joseph Conrad,

Use your own mind on what to buy and sell!!

Canestsal

Thanks for that article Rick ...

... I'm happy to see the correction, and it is much needed. Better to have this now, than a perfect storm situation where everything goes wrong at once ending up in 10% Nasdaq/Dow down days.

Josh

__________________
"None are so hopelessly enslaved than those who falsely believe they are free" Johann Wolfgang von Goethe

capt_nemo

IMHO this has went on long enough, Some reality needs to set in beofre it really blows up!!! Happy Thanksgiving Josh and all SHOer's!!!

__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind.
Joseph Conrad,

Use your own mind on what to buy and sell!!

whizknock

Nemo, Josh! Happy Thanksgiving! I will be at a couple Gratitude dinners later today!

capt_nemo

Just got home from work, and sue had da bird in da oven. All the other goodies on the stove, weeeeeeeeeeeeee Got all the cabinets, fridge, microwave, and stove in today. Oh and the counter tops, Second ones always go a lil smoother, weeeeeeeeeee again

__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind.
Joseph Conrad,

Use your own mind on what to buy and sell!!

whizknock

It almost looks like it's churning here! Can't help but wonder if current levels hold on anticipation of holiday retail sales with more declines in early 2008. The next three weeks should tell us a lot about where this thing is headed.