Dow Index - The trend is your friend until it ends.
#1

Yes it can rally in the short term given it is so oversold

Dow is sitting roughly at 10yr average PE ratio.
This does not mean it is fairly valued. Interest rate  is rising to highest level in a decade at the fastest pace. Earnings growth will slow  and recession looms

Dow can do a short term rally but cannot sustain a longer rally

a. The moment if moves up it becomes expensive from the average

b. Markets typically stop falling only after the Fed js done raising rates.

c. Bear market rallies and dead cat bounces are common occurances as market falls.

d. Bear market durations of 2-3  yrs are most common with some stretching to a decade.

e. The great covid everything bubble of 2021 burst in Jan 2022.....

f. Don't rush in if u are waiting for a better entry level.


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I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#2

Bad news is good news.  US market cut its falling after a rise in jobless claim and report of higher oil price.  Ha ha. Expect volatile market lah



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#3

you try hard to reason with the market but does it reason with you or not?
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#4

Good US job report. Now good news becomes bad news. Another volatile day.



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