djia

What Dow Theory may be telling us about the market

Dow Theory states that Dow Industrials and Transports averages must confirm each other (amongst other components of that theory). If these two indices diverge, it’s potentially bearish. The DJIA and S&P 500 have broken out to new all-time highs recently. When the Transports (TRAN) and Utilities (UTIL) indices didn’t confirm the highs on the Industrials, Read More

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TLT LONG

The best way to play junk bonds

High yield bonds, affectionately called “Junk bonds” by the industry, have been defying the recent pullback on investment grade paper lately. Take a look at the chart of the US long treasury “TLT” above. That looks like a topping formation to me. Lower high, lower low taking out the last low, and a break in Read More

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