Last week, The Dow Jones Industrial Average hit an all-time high and crossed 27,000 for the first time ever. On the other hand, The Dow Jones Transportation Average is still about 9% below its all-time high. Some experts are citing Dow Theory as a reason for concern going forward while others argue that this century-old […]
Investigating the Recent Dow Transports Weakness
It’s hard to find a risk-on equity asset class that hasn’t bounced since the Dec 24th low but that’s old news.. What should intrigue investors is the recent weakness in the Dow Jones Transportation Average, including a 9-day losing streak and a lack of discussion about it. Frank Cappelleri, Executive Director at Instinet, provided data […]
All Eyes on The Dow Transports
Charles Dow is known as the grandfather of technical analysis for his ideas that lead to the formation of Dow Theory. One of the main concepts within Dow Theory is confirmation. Confirmation happens when The Dow Transportation Average confirms the trend of the Dow Industrial Average. In other words, the companies that transport the goods […]