Playing with dow theory; short DJI
* Transports turning back toward primary trend
* Industrials not following yet
* Volume seems weak to me, doesn't confirm anything. Implies weakness of trend?
Based on this I would conclude, despite the volume issue:
* DJI correction due in a matter of a week or two amounting to a total of ~4%, following the transports down
* DJT correction to continue ultimately amounting to a total of ~5%
I don't have any real confidence in dow theory at the moment, just playing with the idea. Looking forward to pushing the play button on this later.
* Industrials not following yet
* Volume seems weak to me, doesn't confirm anything. Implies weakness of trend?
Based on this I would conclude, despite the volume issue:
* DJI correction due in a matter of a week or two amounting to a total of ~4%, following the transports down
* DJT correction to continue ultimately amounting to a total of ~5%
I don't have any real confidence in dow theory at the moment, just playing with the idea. Looking forward to pushing the play button on this later.
Commento:
I didn't look at the timeline of the secondary trend carefully; I'd say the correction completes by mid December for the industrials. Might get explained as tax selling.
Commento:
Might be turning, both are up again. I'd wait a bit before going long.
Commento:
Looking pretty bearish!