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Dow Theorists Licking Their Chops
Followers of the century-old Dow Theory are rejoicing about Tuesday’s market’s moves. With the Dow industrials surpassing their record closing high, they have joined their counterparts — the Dow transports — in hitting new highs simultaneously. The fact that both trends are moving in sync confirms the market’s upward trend and should bode well for future returns, Dow theorists say. The symbiotic relationship between the two indexes is a clear sign to Dow theorists that the economic message and the market outlook are moving in tandem. The idea is that making goods is one leg of the industrial economy and ... (full story)
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