Is it time to take profits in the Dow?

Sentiment in the Dow has whipped round to the bear-side. John C Burford inspects the charts to see if it's time to reel in his short trade.

January has been a very long month. We have witnessed a massive about-turn in the equity markets. It's hard to believe that it was only one month ago that the Dow was making its all-time high at 16,600. At that time, it seemed like all the bears had disappeared.

Yes, bullish sentiment was way off the scale at the end of 2013. And most pundits were calling for a more-of-the-same year. But I wasn't.

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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.