This stock market indicator was revealed to me accidentally during the Thanksgiving holiday. My grand daughter wanted a cake, she is 13, and at that age they get pretty much what they want, including the promise that she will get her own smartphone for Christmas.
The cake is a pure sugar cake, white cake with about 1/2 inch of frosting. That leads me to the name of the indicator, the Dow Jones Industrials Sugar Cake High. As long as this cake keeps up appearances, the stock market should register new highs. So far the cake is showing no signs that anything has gone wrong. Sugar is a powerful preservative you know. I even zoomed in on the inner workings of the cake to make sure there was nothing funny going on.
This cake was bought and consumed, what little of it was consumed, on November 23rd, and the number on the top of the sign is where the average closed on Nov. 22, the market was closed on the 23rd. Since then the average has gained over 500 points and the cake looks flawless. Disclosure: I have not touched or moved the cake since the 23rd, the cake remains exactly as it was, and will remain so until something unforseen, mold or fungus of some kind begin to grow, or vermin penetrate the clear plastic shell. So far not even the ants have taken an interest.
The question is which one, the stock average, or the cake, will see the infallible patina sullied by some outside (and empirical!) forces. Will Janet Yellen ship me a fresh cake to keep the rally going? And the most compelling question of all, would you like a slice?