Professor Elam

Wednesday July 2, 2014

It's been a long rally without interruption. Here is just how long.

As always the technical indicators are all pointing up, and over bought. I examined two stocks whose charts looked good yesterday. But neither Pandora P nore Westport WPRT have made any money in the last three years, where is the value?

The flood of FED money has meant the markets have been on a tear for the last 18 months. Every rung higher scares those that have been out of the market that indeed, this is the last Fall 2007 rung on the ladder, when, no matter what they say now, the same bullish group was wildly bullish then as well. 

I suspect we take out Dow 17,000 this week. 

Proof that the markets go where they want.

Thousands demonstrate in Hong Kong demanding elections

Civil War in Iraq, Syria, millions of refugees in Lebanon and Jordan

Confrontation in the South China Sea, Viet Nam, Japan  arm against the Chinese

Congress and Administration poll low ratings

Slowest recover, 2% per year, in many a recession

FED fiddles iwth the ecomnomy, record number on Food Stamps

Dow Soars

Go figure