Ok so here we are with a pretty sizable retracement. We went from a high in the Dow of 18,351 down to a low of 15,377 before this thing stopped and turned. We came within 623 points of our projected high, a high that we called for back in 2013. There is no reason to change that projection. This economy has been doing an excellent job and folk that have not been invested in the stock market have totally missed out on an excellent return. Remember, we've been long since March of 2009 and if you look at a long term chart you will see that we've been nothing but up with the occasional pull back.
What I'm seeing right now is this market needed to rest and get some strength together before going higher. But hold your horses, we still may have some drama in front of us.
We need to close above 18,400 in the Dow before we can say we are out of the woods and we may or may not get there in 2015. But, if we get that close, we may just be on our way to blow past my 2013 prediction. Again, don't count you chickens before they hatch.
I'll keep you posted on what I'm doing. Right now, I am still long the American stock market with 100% of my assets invested in a no-load, total stock market index mutual fund, like the Wilshire 5000. I am also dollar cost averaging any new money into the Wilshire 5000.
Shoot me an email or post your thoughts if you are so inclined.
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