An ancient market signal has been triggered today, one that was used by men riding on horseback to work, 100 years ago to this very day. As you sit there, in your pleather chair, analyzing charts and what not, you should know that the Dow Jones Industrial Average and the Transports, aka “The Trannies”, both closed at record highs today. This sweet concoction of market ambrosia is called The Dow Theory Signal, and you should behold it.
This is widely revered as a bullish signal for stocks. After all, if the truckers and trains are doing well, at the same time the industrials are hitting on all cylinders, one has to believe the economy is growing at 3-4%, never mind what the actual data suggests.
Let’s examine the last time this “Dow Theory” signal was triggered and what occurred immediately thereafter.
Dow Theory triggered in November of 2014: SPY +2.75%
December: -0.25%
January 2015: -2.96%
February: +5.62%
March: -1.57%
Prepare for an immediate drawdown of 3%+, followed by gains of 0.84% over the next 4 months.
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Sell
so…. long UVXY for a month. . then buy SVXY & hold?
Sell tech for sure. People will be misty eyed losing money on all the horseshit globalist plays in that dead sector like biotech for the next year or so. It is about the red blooded American now. Dirt metal building being a man basically. Possibly.
I recall many years ago I doubled down short on a DT sell signal. I got smoked. So Keep that Red Pill handy.
It’s time for the DOW MAGA theory. The market will never drop again as long as Donald J Trump is president or president elect… Therefore, the market will drop when Jill Stein gets her way and hands the presidency to Hitlary Clinton.
Are you bringing back the golden bull? Err, golden bear it must be.
Tough crowd at Zero Hedge, schumcks with Brad Pitt delusions don’t get you. LOL
I expected as much. They don’t know me and so I have to do combat with them to mould them. It will take time, but I will win in the end.