The One Minute Millionaire Diamond Mine
 The Wealth Factor
 Stock Market Strategies
 By Dr. Stephen Cooper

So, What’s the DOW Going to do?

Do you really want to know? O.K., the Dow is going to go up. And then it’s going to go down awhile. Later on it will rally and then stall. Sometime after that it’s going to falter and then go down.

Do you feel better now? There are few days that go by where someone does not ask this question or one very close to it. Sometimes I wonder what the askers would do if they really knew exactly what the DOW was going to do. Yes, the DOW will do what it will do no matter what we think we know. But that is not a bad thing. If you are willing to go where the money is flowing, you’ll do very nicely—very nicely indeed. Let me show you a little trick. If you have a chart with 20-day and 50-day moving averages drawn in, you’re all set.

The red line on the chart to the left is a 50-day moving average of closing prices. The green line is a 20-day moving average. These two little lines will help you see where the money is going, either into or out of the DOW.

As the green line passes up through the red line we’ll buy or go long. If the green line moves down below the red line we’ll sell or go short.

As you can see, the past few months have been the time to buy. Right now the green line is starting to dip down toward the red one. This indicates that it is time to get ready to sell. When the green line actually crosses down through the red one we’ll sell or go short.

Don’t make this harder than it needs to be. Just look at the lines. If the green is above the red we’ll stay in long positions. When it crosses back down through the red, so it’s now on the bottom, we should not be buying. This next chart is the NASDAQ. You decide—should you have been buying over the last few months or not?

The NASDAQ has been moving up very strongly, keeping the green 20-day moving average line well above the red 50-day moving average line. During this time, you can see that for brief periods the NASDAQ actually went down. It is during these kinds of movements that ‘The Big Question’ comes up. “Hey Coop, is the NASDAQ going to go up or down?” Yup, now you know the answer. "It’s going to go up and then it will go down a bit followed by some sideways with more up later on."


Dr. Stephen Cooper is the Director of, a training and support Web Site for both beginning and advanced traders. Over the past four years, Dr. Stephen Cooper has been the primary Stock Market Trainer for Mark Victor Hansen and Robert Allen’s Enlightened Millionaire Institute. He has taught thousands of students his proven trading strategies. He is the author of The Online Option Trader, Windows to Wealth, and The Truth About Money. He has also authored 10 interactive chart analysis tutorial CDs and contributed to several newsletters and publications.