Monday, August 31, 2009

Make Money Knowing Dow Jones

I have some interesting facts regarding Dow Jones Industrial Indexes. Since 1895 to 2009 the chart lowest low starts to read from 28.66 on August 07, 1896 to present highest high at 14164.53 on October 9, 2007. If you want to know the future the history will probably gives you some clue.

Overall, whenever markets go down they will come up higher highs through the years as proven. The strongest will survive while the weak will say good bye - companies. That happens when new creative stuffs evolve such as in the 1800's when super design and powerful cars appear. In the 1900's technological stuff such computers and mobile phones stuff appear. However, consolidation or stagnation appear when nothing new seems to attract human to trigger the economy. Maybe in the coming late 2000's accessible amphibious crafts
for transportation or regular size watches with super computer capabilities might appear to the public at affordable prices and the economy will rush up as it attract more people to buy.

Now let me show some fun facts. Whenever the lowest reading from DJ appears the coming highest reading will be around 2 to 6 times higher. Wow, that shows that we are in for the next really strong bull run after this temporary bear market. Benjamin Graham was right in his studies and was one of the greatest investor in the world. Do not rush into any investment or trade cause lots of studies need to be done. The market might be heading towards the head and shoulder formation 1st for some time before heading north.

Please note that I am not any great economist, analyst or etc. The very real fact that a few great investors or traders make big money, they doesn't follow blindly from hot tips or news. However, I am a strong believer of George Soros 'Theory of reflexivity' , Jesse Livermore 'Follow the tape'
and Arthur William Cutten trading style. Ever wonder why 5% do things differently from the 95%? The 5% are very secretive about how they trade too.

I have compiled the decade's low to decade's high DJ readings as below, feel free to comments.




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