Dow 36K, 40K, 50K

Dow: 40,003.59 on 17 May 2024

The Dow's progression in price can find strong support in the book, Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market in 1999 by James Glassman. His predicted time frame did not happen as called, but it did reach the title number in 2021. At the time of the publication the Dow stood at 10,700.

As you know, last week the Dow rose and closed over 40,000 for the first time. The internet was a buzz with even higher predictions. I read Dow 50K? Let me remind you Dear Reader, that at the end of the millennium saw another publication in 1999. This one is titled, Dow 100,000: Fact or Fiction by Charles Kadlec. He believes that this will happen, eventually. Do you know what Evolution believes? We say it almost weekly. The Federal Reserve destroys the value of the dollar. This corrupt cabal is killing America and all the founding fathers hoped for. Money printing leads to inflation which means the loss of purchasing power in the currency. Those books on predictions are just another example of what inflation does to an economy. Higher numbers are not getting you rich, but showing how poor you have become. Did anyone write a book on Zimbabwe? They raised their currency bills constantly due to inflation. They had a trillion dollar note. I heard that you could purchase a loaf of bread with it?

Back to the Market

We told you that the Bulls are in control of the market. We also mentioned back in January that analyst stated the market would look choppy in the first six months and turn into a rally in the second half of this year. So far, they appear correct. 

In a related aspect that serves as an indicator for the current rally, Sebastian says look at the junk bond market. Watch the spread. At the moment, it is reflecting a market environment with little risk. If the spread widens, the rally will stop cold. The wider the spread, the further the market will drop. JFL shares a similar thought with the VIX. It is currently low which reflects a bullish market. The confluence point is 15. It is breaches 20, a correction is in the works. Since the chart on the VIX is bullish, the Bulls with their hedge funds, private institutions and big investors will hold court. There is also a belief that a rate cut is coming by the Fed. Meanwhile, wars are continuing. Politicians only seek to win in 2024 with little substance to make life better for the nation. We remind you to say a prayer for people who are troubled by terrible weather like tornadoes and the approaching hurricane season get some relief. Peace.