Transports Celebrating the Dow Confirmation
- Posted by Greg Harmon
- on November 5th, 2013
(Sorry Prince is kind of a douche about sharing video…)
The Dow Jones Industrial Average ($DJIA, $DIA) confirmed Dow Theory last week, making a new all time high, to go along with the all time high made in the Dow Transports ($TRAN, $IYT) in mid October. For you non Dow Theory people, notice that this lagged by 12 days. Stop getting bent out of shape about a time lag. This is an indicator for a long term trend confirmation, not for day traders. What has happened since then? The Transports are partying like its 1999. The Transport Index is moving back higher again and has a Measured Move higher to 7592. With the RSI over 70 and the MACD at high
levels it is unlikely to happen in a straight line. But the prospect shows the strength in the market. Not frothiness, don’t get the wrong impression from the Prince video. But when stocks like Kansas City Southern are ready to break out you have to be involved. Why even the Dow itself started back higher after only a 2 day pullback. Should it continue the Measured Move higher would take it to 16545. Hmm, where does that number sound familiar from? Oh yeah, it is only 1.5% from the target for year end established for the Dow back on May 8th . Isn’t it funny how these things work sometimes?
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through October 2013 Expiry and sign up here for the free 7 day trial before you pay.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- How This Week’s Top 10 Performed September 30, 2016
- Is Crude Oil Capped
- Head to Dunkin’ Donuts for National Coffee Day
- Premium Earnings 9-29-16: Costco and McCormick
- Weaving Point and Figure with Candlesticks in the S&P 500
- The Case for Lower Longer via Pimco’s Tony Crescenzi
- Premium Earnings 9-28-16: Accenture and Conagra
- The German Situation
- Premium Earnings 9-27-16: Nike and Blackberry
- Australian Dollar is Back to Being a Commodity Currency