Dow Theory Bull Signal Looks So Strong

Stock Trader Lance J

Stock Trader Lance J

Both the Dow Jones Industrial Average and the Dow Jones Transports Average are hitting all-time highs, giving a clear buy signal in Dow Theory.

The Dow Jones Transports confirmed a break-out this week too.

dow-transports-chart.png

And then there's the DJIA which confirms...

dow-jones-industrial-chart.png

Dow Theory is telling us that this Bull market still has very strong legs.
 
DeltaRisk said:
The Dow theory has zero substance.

Buisness cycles......just read guys.
There isn't backtesting to do, it's how our economy works. Easy credit and oh my we have increased stock prices.

Richard Werner does have quite a bit of research on this, if you need a link I'll send it your way.
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Zero substance? There's a reason it has been around for 115 years and is still one of the most widely followed indicators on the planet. It signaled a downturn at the end of 1999, just months before the March 2000 crash. It also gave a buy signal in April of 2009 at the start of the current 8 year bull market run.

I strongly disagree with your "zero substance" comment but each to their own.
 
Dow Theory = granddaddy of all methods
It used to have just 2 horses, now with S&P there are 3.
The Nasdaq, no slouch either asked the 3 of them if they brought a horse for him?

Trannie replied, "looks like we are shy one horse"

Nas shakes his head and says to 'em, "you brought two too many"

S&P has watched in agony over the years that all turns were heralded first by a turn in Nasdaq/S&P ratio.
 
Stock Trader Lance J said:
Zero substance? There's a reason it has been around for 115 years and is still one of the most widely followed indicators on the planet. It signaled a downturn at the end of 1999, just months before the March 2000 crash. It also gave a buy signal in April of 2009 at the start of the current 8 year bull market run.

I strongly disagree with your "zero substance" comment but each to their own.
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Good points STL,;
but maybe DeltaRisk meant some thing like IBD, which does not really like the idea of WSJ picking 30 stocks for the market....... LOL. I tend to trade DOW transports goose egg%,[zero] but good principles, even after 115 years..................................................................
 
[Great quote ...QUOTE="Joe_D, post: 4486847, member: 500027"]http://www.marketwatch.com/story/th...indicator-sends-a-fresh-buy-signal-2017-07-05


America must be very healthy - there is no better way to measure her health than by the stock prices......[/QUOTE]
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Great quote Mr Joe, i agree with that part; NO way would i consider 30 stocks + transports or a sector a good measure of USa health LOL. IBD some times does NOT even put a DOW chart on its main chart full page ''Whats the Market Trend'' page. S& P 500 , NasdaQQQ, IBD Newspaper/website. Even though billion$ , no doubt have been made off DOW/DOW Theory; S&P 500 //SPY is the main benchmark + Nasdaqq is more help to me than DOW.

Like IBD [investors Business Daily ]notes; Dow [30 stocks] is easier to manipulate. Thanks:thumbsup::cool::caution::caution:
 
I just think that a bull market that has proven itself for more than 8 years now, backed by an indicator that's been used for 115 years, has a bit more weighting than some guy posting conspiracy theories over the Internet about the market all being fake and manipulated, I know, f*** me right?
 
Stock Trader Lance J said:
I just think that a bull market that has proven itself for more than 8 years now, backed by an indicator that's been used for 115 years, has a bit more weighting over the Internet............. about the market all being fake and manipulated, I know....
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Actually not only do i see your points , MerSTLance,; i mostly agree, did you see my comment on 'billions made= billions of dollar$ made [on Dow theory ''??
I like XOM+ CVX.....= Dow stocks.................................................................. Thanks; STLance:thumbsup::cool: . By the way its easier to bring down 30 stocks than 500[ simple math]; which is another reason S& P 5oo is the main institutional benchmark. NOT a stock tip. I use DOW theory , but with S&P 500/SPY................................................................Thanks for DOW theory post+ congrats on your use of it; i use it, 2:thumbsup::caution:
 
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Primary uptrend continues as per Dow Theory

Is it possible to get a signal of trend reversal way before Dow Theorists? That's what I'm working on?

first alert: Transports break an uptrend line July 19. If Transports < 9256.07 = first red light.

2nd alert: Nasdaq/S&P has a huge momentum break

No call yet, Dow Theory up continues nicely
 
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