Dow Theory DJI and DJTA

    “Dow Theory”

  In examining the “Dow Theory”, we learn Mr. Charles Dow developed two broad US market averages in 1897.  The first Dow Jones Industrial Average only contained 12 “industrial” stocks. The second, the Dow Jones Transportation Average contained 20 “transportation” stocks.  Based on articles written by Mr. Dow and published by the Wall Street Journal in 1902-1905, Mr. Dow thought of using the US markets’ trend as a way to monitor the US economy for general business conditions.  That is, and will always be, part one of my analysis.  Current analysts, ignore “Dow Theory” part one, in favor of analyzing market trends, my part 2, to predict, or project, stock prices.  In my humble opinion, every “Dow Theory” analyst that ignores Part 1, probably isn’t going to get Part 2 right. 
   This article, with more homework to be added from drafts,  seeks to explore Doom and Gloom articles’ cautions and warnings of Dow 5500 …  but not just from the charts.   Any investor and/or trader, doing their own homework,  looking at past data for “similarities” … should also be looking for “what is different this time?”    It’s your money, my money, our money, and … despite the Math, Science, equations, calculations, and disclaimers, like my own: “ALL projections are for reference only as they can be easily exceeded, up or down, by Mr. & Ms. Fickle Markets.”,     I repeatedly have to add that charts are visually interpreted by human beings … and those interpretations can be influenced by the bias of the analyst … so, “Sorry, past performance is no guarantee of future similar results.”   
  Related blogs:

———————————-

 

dji-djt %c20160729

Chart #1 (above, daily-EOD, %Change)  The above chart is the percentage change in the Dow Jones Industrial Average (DJIA, .DJI) compared to the Dow Jones Transportation Average (DJTA, .DJT) going back to the first US markets correction as of August 21, 2015.  I deem that appropriate considering the propensity for US markets corrections to occur in August and September of any given year.   Note: EOD = End of Day

Clearly, the above chart is telling us that “something” starting in October 2015 began to weigh much more heavily on the Dow Jones Transportation Average (DJTA, .DJT).  So, that is where I started my focus …  but, this is still a work in progress.   I thought the chart needed to be published … because it is your money.

As I work thru my drafts and notes, I’ll additional info here …

If you have any thoughts or opinions … please feel free to post a comment below …

 

-–  Monday, 8/1/2016   thru    Friday 8/5/2016  ——

 

Hope the above Dow Theory DJI and DJTA  calculations for Monday, 8/1/2016  help your investing and trading planning today …

 

 

Advertisements

One thought on “Dow Theory DJI and DJTA

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s