Bull Market Advance Not Bear Market Rally

Dow Theory Letters
"But barring some jarring, totally unexpected event, I remain of the opinion that the stock market has already discounted the worst that can be seen ahead. That doesn't mean that the market can't decline from here, and that doesn't mean that the Dow can't even violate its March 10 low -- but what it does mean is that we're almost surely not going to see both Averages, Industrials and Transports, break to new 2008 lows.

And, if by chance, somewhere ahead the Dow does plunge below its March 10 low, the odds are high that the Transports will not confirm. In that event, the event of a unconfirmed Dow low, we'd probably have arrived at a great buy spot. Some of the best buy areas in market history have appeared at the point of a painful but dramatic non-confirmation between the Averages.

But the big fact, the trillion dollar fact, is that we're in a bull market advance -- not in the bear market rally that so many analysts state that we are in." (6/5/08)

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