Re: According to Dow Theory - Bear Market
Even though bull and bear markets are only perception and not reality I still like the topic. [img]/images/graemlins/smile.gif[/img] Pretty easy to tell, in a bull market stock prices are rising and people think they will continue to rise, in a bear market prices are falling and people feel they will continue to fall.
Most bull markets end in a recession or a severe crash of 20% or more of a decrease in the DOW market value. In times of low unemployment, low inflation and high production I would say that is a bull market.
I did get a smile from this though:
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The pros have been huge shorts for months, I agree.
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How did they not all go broke already? Didn't the DOW just set an all time high? After more thought maybe we will enter a bear market now. There is no one that went short with enough money left to cover their short positions, ergo no buyers so perhaps the stock prices have nowhere to go but down now.
Jimbo
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