The Dow cannot go below the 10,000 line. That is the new 'zero'. The Dow will not fall below this mark. It cannot. It will not. It will not be allowed. Every single person that owns even a single share of stock can sell that stock on Monday morning and guess what? The Dow will not go below 10,000. Why? The PPT will not allow it. And, they have a printing press. It appears that their strategy is to boost the Dow every single time the index hits 10,000. After ten or fifteen times, every investor on the planet will catch on. Mortgage the house. Break the piggy bank. Sell a few kids. Do whatever you have to do to raise cash when you see the 10,000 mark penetrated. You know what to do. Put it all on '25 Red'. Uh, I mean, put it all on the Dow. Ben is on your side. Up goes the Dow. It is magic. It is definitive. Of course, it is a con but you have to be on the same side of the con as Ben.
Just look at Friday, August 27, 2010. The Dow dropped below the 10k mark on Thursday's close. Friday morning, Intel said sales were slowing, durable goods were weak, housing sales were the worst on record, unemployment was still 'officially' at 9.5%, and second quarter GDP was revised down from 2.4% to 1.6%. And, ...well..., you know the drill. 'Dow below 10k, Ben'. Uh, excuse me but the Dow opened even lower. I said, 'The Dow is below 10k, Ben'. There we go - a 165 point rally! And yep, we had strong volume. Okay, Ben - I've got it. The next time the Dow drops below 10k, I'm buying with everything I've got. I don't care if the US just announced bankruptcy and bond default. I don't care if IBM, 3M, and M&Ms just announce bankruptcy. I don't care if Buffet went broke and Gates had to get a job as a janitor. I don't care if every hammer on a construction site just quit swinging and every wrench in every factor just went silent. I don't care if GDP was minus a hundred. I'M BUYING! You know why? Because it doesn't matter anymore. The man with the printing press has clearly demonstrated a line in the sand.
Take a look at the chart below. It is the Dow year-to-date. You can draw the line at the 10k mark and see that every time we hit, we get a rally regardless of the economic news. This might be the new 'Ben' strategy. Buy at 10k and sell a few hundred points higher. Wait for a dip below 10k and repeat the exercise. Ben, if you are reading this, could you just send me a reply email to let me know that you will never let us down. Thanks, Ben.
DJIA Year-to-date
Chart courtesy StockCharts.com
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