Posts Tagged ‘dow theory’
Charles Dow Rolls in His Grave: The Distortion of the Average He Made Famous
Friday, March 6, 2009 17:57 6 CommentsHave you ever asked yourself why the Dow Jones Industrial Average contains non-industrial stocks? Why such a large weighting is given to financial companies such as American Express, Bank of America, Citigroup, JP Morgan and AIG (Before its removal)? After all, you wouldn’t expect to see General Motors included in the healthcare index or Goldman [...]
Dow Breaks November Lows; Triggers Fresh Dow Theory Sell Signal
Thursday, February 19, 2009 22:03 5 CommentsThe Dow Jones Industrial Average breached its November low, closing below 7500 for the first time since October 2002.
In only 18 months, the index has given back all of the gains achieved over the previous 5 years.
The chart below shows the index taking out the 2002 lows, but keep in mind that this is a [...]
The Coming Stock Market Crash of 2007
Monday, January 1, 2007 20:24 12 CommentsJanuary 1, 2007
Charting Stocks 2007 Outlook:
The case for a Stock Market decline in 2007
-Contraction of the manufacturing sector: Usually precedes a recession
-Auto production declining by more than 10%: Usually precedes a recession.
-The collapsing real estate market: Public Home Builders report record cancellations. KB Homes 53% of orders were cancelled in 2006. Pulte Homes 36%, [...]
