The Dow has risen an incredible 11 out of the last 12 sessions. I don't remember seeing anything like this before. As I see it, the Dow is climbing on a rising tide of liquidity. The central banks of all the developed nations are now printing wildly -- the result is a parabolic rising structure in the Dow.
In this business there is always something to worry about. For instance, let's take the D-J Utility Average. The Utility Average came into being in 1929, long after the Dow Theory came into being. Consequently, the Utility Average was never incorporated into Dow Theory by early Dow Theorists. However from experience, I do watch the D-J Utility Average, and for good reason.
Historically, the D-J Utility Average has tended to top out around three to six months before the general market tops out. One reason is that the utilities are extremely sensitive to moves in ... Log in or subscribe to continue reading.
Premium Content Notification
A subscription is necessary to access premium content.
Please use the button below to subscribe in order to access all premium articles