Saturday, July 18, 2009

Compare ADM and the DJIA

I had a thought. Look at the chart for Archer Daniels. Big pop in October, which was when that sector of the market "bottomed", and prolonged sideways move in a range...

Then look at the chart of DJIA. Same big pop, but this time in March, followed by sideways range bound move.


If the DJIA follows the same pattern that ADM has, then DJIA will continue to trade sideways for a rather long time with many false break outs and break downs - similar to the ones we just endured.



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