Weekly closing update

I am impressed by the price action of the Dow Jones Industrial for this week: its breakout to a new all time high must be respected. The index is overstretched and  overdue for a correction that will likely start next week (all the technical I observe demand that) perhaps with the new Moon. Only after I have seen seen how the correction unfolds I will reassess my view about the nature of this top. The FED pumping and the BOJ pumping are significantly affecting the US stock market and the Dow Jones Industrial Average: it is now seen as the "safe heaven" of stocks as Europe crumbles and the Japanese Yen collapses...in this situation the Dow Jones Industrial is gaining a "premium" and it is becoming richer versus other indexes. My idea to bet against the Nasdaq 100 as the weakest ring in the chain  continues to be a good one since the Nasdaq 100 is going no where on a relative basis. (see charts below).

Anyway this week was interesting and it demands more attention...I will have to study my charts in depth. I will comment next week. Have a good week-end!

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