Dow to 16,000! (Thank Ben)

As the deranged central bankers running amok with $110 billion per month monetization (that's what it is, even though it is done through the primary dealers - who happen to own the Fed), the sky seems to be the limit for the stock market and the commodities market.

Buy anything, it will be good for you, says the bankers.

So, let's take a look at how high Dow Jones Industrial Average can go, TA-wise. I know, I know, what's TA in the age of permanent meddling by the Fed? Well, algos used at the NY Fed may be programmed to think and act like a human trader. Their time-span is in seconds for their "long-term" holdings, that's all..

This is 5-year monthly chart of Dow. See how it is fashioned like a cup and handle? A rather pointed cup but never mind that. The index is just breaking out of the handle high. From the pattern, the target price would be:

Depth of the cup + handle high. And that computes to: 16,046.


Sometime in 2012 maybe. Ben should do QE3, 4, 5, 6, 7... to make sure it gets there. But good luck when you have to answer Ron Paul in the Finance subcommittee, Ben. You can't laugh at him like you did before, because he will be the chairman of the subcommittee...

Again, this is not an investment advice. Just for your entertainment. Laugh and be merry. A cup of Starbucks coffee may cost you $20 soon, but your 401K will increase in price (until the government decides to seize it from you by stuffing special Treasury retirement bonds...) GLTA.