The Dow Jones Industrials’ Unimpressive 5-Week Selling Streak Could Become A Meaningful Prelude

The CNBC headline sounds scary: “Dow rises nearly 100 points, but posts longest weekly losing streak since 2011“. It sounds like sellers have gripped the stock market! Normally, I ignore the Dow Jones Industrial because it is meaningless as an unrepresentative price-weighted index, but I could not ignore this headline. At first blush, I thought … Read more

General Electric’s Removal from the Dow (Re)Exposed the Index’s Key Flaw

The big index news of last week was General Electric (GE) getting dumped by the Dow Jones Industrial Average (DJIA) index. The index managers at the Dow picked Walgreens Boots Alliance (WBA) to replace GE. Source: I wish the entire Dow index could follow after GE. Traders do not use the Dow for anything … Read more

T2108 Update (January 4, 2017) – A Tantalizing Day for the Stock Market

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more

How the S&P 500’s Current Breakdown Increases the Odds of Further Selling

(This is an excerpt from an article I originally published on Seeking Alpha on September 8, 2015. Click here to read the entire piece.) This piece was inspired by a model of the stock market created by Daniel Moore in Seeking Alpha titled “Dow Sends Rare Signal At The August 2015 Month-End Close.” Moore’s model … Read more

Poor Participation In the Market’s All-Time Highs Drives Caution

I do not pay much attention to the Dow Jones Industrial Average (DIA) and greatly prefer the S&P 500 (SPY) as being more representative of the stock market. However, anyone with a pulse has likely heard or read the breathless headlines about the Dow’s all-time highs. The Dow is now up ten days in a … Read more