Dow Jones Targeting 20,000 In 2015?

[big_dog]

The U.S equity markets continue to move higher with determination. The Dow Jones Industrial Average (DJIA) has broken the 18,000 level and now may have its eyes on higher price targets. As many of you are aware, I analyze charts, using mathematics, geometry, and music to identify price patterns. And one of America’s most highly visible stock market indexes, the Dow Jones Industrial Average appears set to go higher yet. Below are some bullet points relating to potential targets, followed by a long-term chart.

Dow Jones Targets:

Dow Jones Industrial Average – folks, 20,661 is a realistic target.
Minor targets exist in the 18,974 -19,855 level.
As you can see below, I was expecting “some” resistance based on the .618 price projection level around 15,242. Like the Dow Transports, it did not respect that level at all.


So, as we come to grips with the very strong deflationary wave that is hitting the rest of the world and we see currencies crashing we need to realize the global flow of funds certainly looks as if it’s moving into the US Equity world. Are we out of the woods? I really don’t think so but I do think we have the potential for one final thrust higher into the levels I outlined above before we catch the global sovereign debt contagion. http://www.seeitmarket.com/dow-jones-targeting-20000-djia-investing-13972/

[abelenkpe]

1. What does he mean

"...before we catch the global sovereign debt contagion"

[FBaggins]

2. Not exactly a risky forcast

That would be a fairly commonplace return (roughly what the market has averaged over many decades).

[Warpy]

3. I hate it when I see predictions like this

because I remember a dream about a 3000 Dow in September 1987 and I remember a prediction of a 16000 Dow in October, 2007. Both predictions came true but not before some nasty crashes that panic sellers never recovered from.

Right now, two things are keeping the Dow going: mob psychology thinking the sky is the limit and low interest rates that have destroyed the bond market. There just isn't any other place you can put money to earn money and people think they're going to cash in on endlessly rising stock prices.

I would refer people to this cautionary tale. It applied to housing prices then and it applies to the stock market now:

[big_dog]

5. I would watch out anywhere above 20,500...this model predicted 1987, the Dot com Bubble and 2007

cheap oil can only get so far

[FBaggins]

6. Can you show that prediction from 1987?

Or is this just another exercise in back-fitting?

[upaloopa]

4. Mathematics geography and music

why not throw in some tea leaves and astrology just to true everything up.
I didn't need any of those things and came to the same conclusion.
With all the wealth stacking up on one side the bulk of it has to be invested because they can't spend it all fast enough. With all the money invested and more to come in 2015 you got to think prices are going up because demand for investments is going up.
Be sure to sign up for my weekly investor guide. I take grass and throw it in the air to detect the way the wind is blowing. Be the first in your club to know.

[doc03]

7. I get more nervous when the market is making new highs then when

it is low. Seems like every time the market starts making new highs a crash isn't far off. When to really worry is when
you hear the small investor is finally getting in the market, it is ready for a blood bath.