I don’t spend my life pouring over charts but I do find them extremely useful.
Charts are brilliant at predicting the past.
As such they are well used to interpret the narrative that has got us where we are today.
Simple narratives are the most useful.
As someone who has been drawing lines all over Forbes this year I think I can hold my head up and say I’ve used them to make some pretty big call.
So what about 2014?
Well I’m gobsmacked by the Dow chart.
If that isn’t the mother of all breakouts, then what is it??
You can of course ignore charts and say they are hocus pocus, but if you pay technical analysis even an iota of attention, then the Dow chart has to be the bigger bull signal in a decade.
The thing to remember is this is not a free market, so the randomness of the efficient market is degraded.
Take away the freedom of a market and it loses its randomness and its trends get clearer.
Now you might say the market is still a free market but when the senior market of debt is bound and gagged by government intervention of a trillion dollar scale then I beg to disagree.
So what we are seeing is a chart trend caused by QE. Any disagreements there?
This trend say, the Dow is in another dynamic. A different one from 2000-2012. And which way is the arrow pointed?
Up!
So Im left thinking “Holly Cow.”
Here is the “Holy Cow” chart up close. If you can call a decade up close.
To me that say 20,000 or bust.
Really?
Actually I can’t believe my own eyes.
However it doesn’t matter what I believe as I’m as long as Python on Viagra anyway.
However what this chart say, if you believe a chart can tell you anything at all, is that something new and big is on the cards and it is happen now.
Right now.
2014 is going to be a big one.