The Dow has struck one of my targets

The Dow has hit one of John C Burford's target tramlines, but he's not taking profits just yet. Here, he explains why.

In recent days, I have been swinging between covering gold and the Dow and ignoring the euro. This is because I really have nothing new to say about the euro the market has been working lower for a month now towards my major target as the US dollar has been gaining strength (contrary to much learned opinion, please note).

But action in the Dow has been anything but normal. In Monday'spost, this was the picture:

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OPEN INTEREST: 51,112
COMMITMENTS
14,7356,4621,85926,95538,50043,54946,8207,5644,293
CHANGES FROM30/10/12 (CHANGE IN OPEN INTEREST: -2,725)
-1,737-2,226769-894-1,467-1,862-2,924-863199
PERCENT OF OPEN INTEREST FOR EACH CATEGORY OF TRADERS
28.812.63.652.775.385.291.614.88.4
NUMBER OF TRADERS IN EACH CATEGORY (TOTAL TRADERS: 92)
2614636276544Row 8 - Cell 7 Row 8 - Cell 8
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Bullish29%-10%39%
Bearish49%+9%30%
Neutral22%+1%31%

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.