New York, NY (PRWEB) July 19, 2010
Profit Confidential, the popular stock market e-letter, today predicted that the Dow Jones Industrial Average would soon turn positive again for 2010.
In his report, Michael Lombardi says, “Mark this number down: 10,428.05. That is the closing value of the Dow Jones Industrial Average on December 31, 2009. I expect the market to soon turn positive for 2010, moving the Dow Jones above its 2009 close of 10,428.05.”
Lombardi continues in Profit Confidential, “The ‘head and shoulders’ pattern the stock market completed forming in late June of this year was likely the most well publicized stock pattern in years. Many analysts and advisors turned bearish on the stock market following the formation of the right shoulder of the head and shoulders pattern. If the majority of stock analysts and advisors are expecting the market to fall (as was the case earlier this month), the stock market will not bow down and oblige. When pessimism reigns, the market moves higher.”
According to the article that appeared in Profit Confidential today, Lombardi believes that the bear market in stocks, which started in late 2007, has only one objective: Bring as many investors as possible back into the stock market before taking stock prices down again.
The reports says, “We witnessed the first leg of the bear market, as the Dow Jones Industrial Average fell from 14,164 in October 2007 to 6,440 on March 9, 2009. From there, when investors were exhausted and at their most pessimistic, the bear moved stocks back to 11,258 in April of this year.”
Lombardi believes that the second leg of the bear market will start soon. But it will be on the bear market’s own timetable and own terms. He says, “Retail investor took the pain of the drop in stock prices from October 2007 to March 2009, but retail investors in general were missing from the picture as the bear rally took stocks up almost 5,000 points on the Dow Jones from March 2009 to April 2010.”
Before the second leg of this bear market takes its first step, Lombardi believes that the bear will do its best to lure investors back into the stock market. Lombardi successfully called for Dow Jones 10,000 late in 2009, and later for Dow Jones 11,000 in 2010.
For the full report, visit http://www.profitconfidential.com
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com
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