Dow 2010 vs. 1930 Rally, Tariffs Put Fuel On Fire, What Could Do It Now? (Chart Video, News)

First off, I compared the Dow bear market rally in 1930 to 2009 (August, 2009) and it's been a very popular post (top 3 on the "popular pages" widget).  I compared both charts and dug into the Smoot-Hawley Tariff Act of 1930 which ultimately led to the Great Depression.  Go to the post here.  So what is going on today?  The Dow corrected at the 2007 downtrend (charts) which was actually a 50% rally from the lows. It could be a normal 10% pullback in a new bull market, as Wharton Professor Jeremy Siegel believes, but in this crazy world you never know wtf will happen next.  Look at what's going on a year after the biggest bailout in history: 9% unemployment, sovereign debt crisis, protectionism, currency conflicts, geopolitical tension etc..

China says U.S. protectionism jeopardizes trade ties (Reuters)
China, U.S. Friction on Trade Issues Is Escalating, Zhong Says (Reuters)
S&P Sees More Defaults in Middle East (WSJ)
UK businesses threaten to pull out of China over protectionism (Telegraph)
Trade war is no option (China Daily)
Ahmadinejad warns Israel against any military move (Reuters)
China Army Urges Treasury Dump, ADEDY Strike In Greece, Iran Anniversary (DVLINK)

Looking specifically at price action, Adam Hewison at MarketClub looks at the 1929-1932 chart, 50% correction, 2007-2009 similarities and potential psychological implications.  The video is free, go here:  Is It Déjà Vu All Over Again for the Dow?.  For FTC compliance I'm an affiliate of MarketClub.  I will chart out the S&P, Dow, US Dollar and gold tomorrow.  SPX looks like it's testing downtrend channel resistance. Also, Marc Faber (Gloom Boom Doom Report) thinks China's economy is slowing and will hurt industrial commodities in the near term.  China Economy Will Slow, Hurt Commodities, Faber Says (Update1) (BusinessWeek).

Screenshot from video

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