Absolute and Relative Charts for Dimbo and Gimbo
The DOW and associated Stocks in the General and Indl's markets will benefit from all the pumping and thumping the monetary authorities are engaging,
However strong, it will be futile when they take their foot off the accelerator as Gravity never sleeps, as is proved in China and other places. There is a bounce here but like so many, I doubt it will carry too far. Nor do I see the DJIA climbing back to its previous levels. Too many mullet know too much as well as Big Fish, those who have not fled already, are leaving this Pond Daily.
No masking this trend. MACD has collapsed thus until it goes and stays positive, any bounce is doomed to return to negative territory.
The PM Complex however is a different tune :
GIMBO lead off in July, mirroring about 2 weeks in advance an OK Rally, which I think is more about base building than gaining ground. The BREADTH ran hard enuf to get into a NO BUY ZONE, a good sign. I expect GIMBO to sink back into a BUY ZONE by Mid Sept, but rather than try to guess I will observe and let you know. Our 321 Scale Plan is operative, and Buy Triggers will be sent Subscribers by Email.
Here is a look at the Absolute Level in GIMBO, and an interesting observation
Ironically, while the PM Sector was getting the stuffing beaten out of them, they sank as low as -4,600. To see how far DIMBO, Absolute could fall, you'd have to realize that DIMBO sits at + 5,700. It took from OCT 2011 for GIMBO to fall from +1,500 to (-) 4,600 in Aug 2015, or 4 years. How far could DIMBO Fall in 4 years ? Now GIMBO appears to be basing and DIMBO appears to be riding for ANOTHER FALL !!
