About the Author

Stephen Oakes is an experienced financial titan from New York who brings Wall Street to Main Street. Over the past 11 years, he has developed and tested the renown, Oakes Momentum System, which uses a unique constellation of technical indicators to find timely buy and sell points. He holds an M.B.A. in the United States (New York) and has studied internationally at the Reims School of Management in France.

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Wall Street Surging on Fluff

October 16th, 2007 • Related • Filed Under

In the chart below, you should have every reason to worry. That is if you are a shareholder of domestic equities.

Dow Jones Industrials

I say this because the price of the Dow Jones Industrial Average (INDU) continues to struggle in an effort to make additional gains, while during the same period, the MACD and RSI have been diverging in a downward fashion.

Ultimately, the price will soon need to follow that of the indicators. In fact, we’re already seeing this event materialize.

If you haven’t done so already, now is a good time to take half or full gains on any open position that exists in your portfolio.

In my estimation, it won’t be long before the Dow tests support near 13,500. Yes, that is roughly 425 points below our current trading level. In the short-term my bearish outlook will serve you well. As soon as the storm dissipates, the skies should be clear for solid gains leading into the year end rally.

Good investing…

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