Monday, September 24, 2012

Trans vs Dow update






This chart above is how Stockcharts explains the Dow Theory.  The chart below is several charts  of Tran/Indu and several bare charts to help get a view. If you wait for the Dow Theory you will leave a lot on the table.





The common wisdom is if the transports go down the market will follow. Going back to 1999 I find that a little hard to prove. I'm open to suggestion because I maybe looking at this chart wrong but there are times the trans seem to have no effect on Spx. I draw a few lines to help line up the Trans with the Spx on the bottom.


Jerry

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