What is Dow Theory Saying Now? It Is Screaming Buy!
What is Dow Theory Saying Now
Dow Transports are in a strong uptrend right now and have done a breakout to an all-time high this week. We need to see confirmation of that breakout on the Dow Jones Industrial Average chart as well.
We have it! With the new all-time high in both the DJIA and the Transports, this means, according to Dow Theory, that markets are headed higher and the 8 year Bull market run still has more to go. This is great news for traders and investors.
What is Dow theory saying Now? It’s screaming BUY! Before you dismiss this indicator with your negative bias argument, consider that there’s a reason that its been around for more than 115 years. Remember, it warned of trouble in 1999 just months before the dot-com crash in March 2000. It also gave a buy signal in April 2009, almost exactly at the start of the current eight-year-old bull market.
Dow Theory Review
Name: Dow Theory Review
Description: Do you use Dow Theory in your stock trading decisions? (1 = No way, it doesn't work, 5 = It's the best indicator and I always use it)
- Do you use Dow Theory in your stock trading decisions? (1 = No way, it doesn't work, 5 = It's the best indicator and I always use it)
Dow Theory is one of the oldest indicators still widely used today. It states that a breakout in the Dow Jones Transports Average or Dow Jones Industrial Average, if confirmed by a breakout in the other, is very bullish for the economy and stock market.