Here is the Dow once again. I do not pretend to understand what is going on in this market. Every day we seem to go up 50 to 100 points without a lot of interruptions. Things are good as we had already done away with real interest rates and now we seem to have done away with 1/2 of taxation. Also many regulations are being rescinded and most importantly capital investments may be written off in their entirety in the first year. Add to that some import tariffs and we are in an economic paradise! Really? And all this courtesy Trump?
We have no idea how the universal experiment over the past 20 odd years for about 20 trillion of low interest will end once things are reversed. Also if it is true that taxes are the cost of civilization than , perhaps, it is also true that low levels of taxation spell the end of civilization. Putting those and other considerations aside and just looking at this chart, and despite not being able to put a clear EW count to it, it remains self evident that a chart cannot go any further than straight up. Essentially we are at that point! On top of that the technical indicators, pretty well all of them are signalling some extreme. Time to short?