Dow industrials shrugged off GM's big profit decline but fundamentals points to massive crash in coming months
Sam Adelton
May 4, 2007

How far can Dow go? It depends how much liquidity in the system will pour into the stock market. Eventually the stock market will perform based on the economy and the corporate profit performance.

It is interesting the S&P 500 is ready to challenge the March 2000 high. But intriguingly, this time the Generals are charging ahead fist and the infantry is following. This happened before. It is call classical massive divergence. It is like unfilled holes in the market. Every time when advanced manifested divergences, the market traced back all gains and some more.

It will be no different this time. The overbought indices registered unprecedented level of optimism in the market place. It is a major problem. The sentiment indices point to the fact that bears have short covered and the bulls have spent their resources for the market.

The downward spiral will look like a correction at first and then bear market will expose slowly in the middle of deflation.

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Dow industrials shrugged off GM's big profit decline but fundamentals points to massive crash in coming months
Sam Adelton
How far can Dow go? It depends how much liquidity in the system will pour into the stock market. Eventually the stock market will perform based on the economy and the corporate profit performance.
READ MORE>>

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Media Release
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Media Release
Dow crosses 13,200, closing at 13,211 after touching 13,256 during session.
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