Oct. 24, 2008 -- DJIA:  ENOUGH ALREADY!

"May we live in interesting times" ... some say this is an Ancient Chinese proverb and others say it is a curse.  We said it during the portfolio insurance fiasco of 1987; and now in today's stock market upheaval caused by many storm fronts; the latest of which is forced selling by hedge funds.

Fundamentals be damned!  Nobody wants to hear about how cheap stocks are becoming during the latest stock market swoon.  As a whole, the stock market is entering its bottom 20th-percentile in terms of valuations.

Technicals haven't worked either.  However, in the midst of all of this doom & gloom, there appears to be one glimmer of light ... the LONG-TERM chart of the DJIA below.  This is a nearly 20-year chart, not some minute-by-minute gyration that CNBC proudly displays [a disservice to its viewers in our minds].

By connecting the 1990 and 1994 bear market bottoms, an upward trendline comes in near 8000 on the Dow.  By connecting the 2000, 2001 and 2002 tops, a downward trendline comes in near 8000.  Both lines converge near 8000.  Where are we going with this?  The Dow is trading currently near the 8000 level.  It may find some technical support here during this capitulation phase of October.

Everyone is in panic mode ... desperation is fueling the selling stampede.  This at least lends an interesting, if not optimistic, element to today's ugly investment landscape.  And oh by the way, we are approaching November -- the best 6-month seasonal period is on our doorstep.

Have questions regarding this chart or our market commentary?

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