Megaphone Friday, 14 November 2014

Musings on yesterday's threads:

Mr Gunter revealed that he's a multi-dimensional man.  A lawyer who studied mathematics and econometrics.  Now that's something.

I dug up this oldie but a goodie:

A mathematician, an economist and a lawyer walked into a bar.  The barman (not quite the sharpest pencil in the case) was having problems adding up a bar bill.  He looked at these three gents - they looked like they might know a thing or three - and asked them:  How much is 2 + 2.

The mathematician said:  4.

The economist said:  Between 3 and 5.

The lawyer said:  How much do you want it to be?

Earlier in the day, Semage asked a question about the megaphone on the American market.  I jumped to conclusions and thought he was talking about the recent megaphone which has appeared this year.  I put up a chart of the recent megaphone.  I appended a note from Bulkowski, the statistician of technical analysis, par excellence, which suggests that megaphone formations are about as reliable as a politician's promises (or words to that effect).

In the middle of the night, I thought maybe he's talking about the larger megaphone on the Dow going back years and years.  Another thought in the middle of the night - that's the sort of thing Martis probably talks about.  (I have Martis on ignore so I wouldn't know.)  But maybe Martis has been yacking on about it - and Semage has been sucked in again?  
Anyway - here's the much longer established megaphone on a quarterly chart of the Dow Jones Industrial Average:



According to this chart, the DJIA broke above the megaphone in the last quarter of 2013.  That, according to the theory, is a bullish break.  And so it has proved.  It has now stayed above for another four quarters (including this one which is still to complete).   But - you know what they say about politicians' promises ..........................

Meanwhile - back in the present, with less than an hour to go before the closing bell, the American market continues to muddle about.

DJIA +0.22%.  SP500 -0.04%.  Nasdaq +0.09%.  They've been swinging up for about the past hour - so they might end up higher.  GLD was also muddling about, +0.09%

Good luck and good trading,
Redbacka