Has the Dow topped out?

The recent rally in the Dow Jones may have marked an important top. John C Burford looks at how to play the market from here.

On Wednesday, when I wrote on gold (which also is at a very interesting juncture today), I promised to cover the Dow today and what a day to be following this up!

The last time I wrote on the Dow, the market had dropped down to the 11,500 area. I said then that I expected a bounce based upon my reading of the Elliott waves, and the bounce might take the form of an A-B-C correction.

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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.