FYI: The Dow Theory is still flashing a “sell” signal. Before this indicator can turn bullish again, the rally that has taken the Dow Jones Industrial Average almost straight up since its Dec. 24 low must end.
That’s why bullishly predisposed Dow Theorists should be hoping for a market pullback.
The Dow Theory is the oldest stock-market timing system in widespread use today. It was created by William Peter Hamilton, the editor of the Wall Street Journal in the first decades of the 20th Century. Its popularity is reason alone to pay close attention, since a buy signal presumably would unleash a wave of new buying in the stock market.
The Dow Theory is also worth following because its long-term track record is enviable. This has been confirmed not only by my Hulbert Financial Digest tracking of Dow Theory newsletters such as TheDowTheory.com (edited by Jack Schannep) and Dow Theory Forecasts (edited by Richard Moroney), but also by academic studies.
Though individual Dow Theorists disagree on the specifics of how to apply the Dow Theory in any particular situation, there is a broad consensus on what it takes to generate a buy signal:
Regards,
Ted
https://www.marketwatch.com/story/dow-needs-to-give-back-some-gains-before-stocks-see-another-big-leg-up-2019-01-25/print
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