TheRumpledOne
6,411 posts
msg #102001
- Ignore TheRumpledOne |
8/4/2011 2:14:47 PM
Dow Theory' Confirms Sell Signal
If there were any doubts that stocks have entered corrective mode, the "Dow Theory" is now telling us the market is heading down.
The century-old Dow Theory, a way to analyze market trends and turning points, says both the Dow Jones Industrial Average and Dow Jones Transportation Average need to move in tandem to confirm the trend. On Tuesday, the Dow Theory officially gave a sell signal, as Dow industrials and Dow transports broke decisively through June lows, with the Dow transportation index hitting a 2011 low.
http://finance.yahoo.com/banking-budgeting/article/113253/Dow-Theory-Stocks-wsj?mod=bb-budgeting%20%20%20&sec=topStories&pos=5&asset=&ccode=
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jimvin
173 posts
msg #102009
- Ignore jimvin |
8/5/2011 12:23:33 AM
For those who (like myself) may desire more on the theory, here's a detailed summary of the concepts in play:
http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:dow_theory
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slotmarket
59 posts
msg #102012
- Ignore slotmarket |
8/5/2011 1:52:41 AM
WSJ reporting it 2 days after the fact is like the horse has already left the barn...in this case more stampeded.
http://www.robertwcolby.com/ is much more timely.
He posted it Tuesday evening
"The Dow Theory signaled a Primary Tide Bear Market on 8/2/11, when both the Dow-Jones Industrial Average and the Dow-Jones Transportation Average closed below their closing price lows of June, 2011."
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TheRumpledOne
6,411 posts
msg #102076
- Ignore TheRumpledOne |
8/8/2011 10:37:41 AM
Looks like a few people went short!
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mmaurice
51 posts
msg #102102
- Ignore mmaurice |
8/8/2011 10:04:27 PM
I have read that if the Dow Industrial, Transportation, and Utility all go below their 39-day MA, you have a bear market and will continue to have one until they go above it.
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