Before beginning this campaign I had been bearish on stocks for some time. The bulls have been relying on the mountains of central bank stimulus propping up asset markets (which one day will be withdrawn).
The Dow was in a strong bull phase in 2013, gaining almost 30%. I began my campaign in late November by taking a bearish stance.
But doesn’t that fly in the face of my recommendation to trade with the main trend?
It does, but I have good reasons for this, as I will show. I have developed a specialty in finding trend changes early and it so happens that in late November 2013, both gold and the Dow were about to change their medium-term trends. That suited me well!
I have been tracking the Dow ...