We have had an astounding run in the markets over the past 6 months and portfolios should be looking pretty good for those that have been long in the markets. I had been expecting a shorter retracement and stopped posting in June after mentioning that the Dow could go as high as 9500, RIMM to 90, IBM to 110-115, and Qualcom to 46. As of this week they hit 9900, 88, 122 and 48ish respectively. For these particular stocks, I think the highs are in. A chart of American Express is included showing a 50% retracement from the all time high. I predict AXP to 22 over the next few months. I also included McDonalds which looks like it might thrust out of a triangle pattern to shoot up to 75-80. The overall pattern of the major indices is somewhat difficult to read, which usually means a retracement, not an impulse wave to new highs. However, that is still in question in my mind because of the inflationary moves by our government. Despite a lot of money printing over the last year, I believe the dollar is close to a turn that should take the dollar index to over 100 over the next year. The first step for that to happen is a close above 78. In the coming weeks, I will post some more specifics and charts about what I have mentioned. Also of note... it has been one year since the shit hit the fan and the markets started an Elliott 3rd wave down, losing 30-40% in a month.
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