Great trades in the Dow Jones index

Volatility in the Dow has presented us with a series of short-term trades, says John C Burford. But how is the index shaping up in the longer run?

I have been looking for a significant decline in US stocks for some time, even as the indexes have been powering into new high ground for many months. And in my post of 4 December, I asked the question: are stocks in a decline?

I laid out my case that the top was near based upon extreme sentiment readings. These readings were also a critical piece of evidence in the S&P, which had hit an important Fibonacci target at 1,815.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.