The main uptrend line is indicated by the solid blue line (last line in the chart above), but we put in a dotted navy blue line for those who would insist that the uptrend line could be drawn through secondary point. Whichever uptrend line you choose, you can see that this point holds true, the greater the deviation, the better the buying opportunity. Look at the chart above; who won the from 1990-2016, the bears or the bulls?. This chart is a clear illustration that the Doctors of Doom only make their money by selling the masses crap they would never dream of using.
The purple dotted line (4th line to the top on the chart) provides a guideline as to future market price action. However, to be conservative, we drew in two lines. The navy blue one (3rd one) indicates that the Dow should easily trade to the 19,500 plus ranges in the not too distant future as long as the trend is up. The 4th line (purple dotted line) suggests that the Dow could trade past 25,000 before this bull market is over. Note that we base everything we do on what our in-house trend indicator: all other indicators even if some message appeared in the sky stating that the Dow would crash tomorrow take on a secondary role.
Just remember that the best time to buy stocks is after a market crash as the masses have dumped the baby out with the bathwater and bargains are to be found everywhere. What should you do during a stock market crash? For starters, you should not panic; make sure you have stops in place to limit your losses and then when the dust settles you can pick up the same blue chip companies or even better ones at steep bargains.
Video of interest: – Stock market bull not ready buckle
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