WHEN IN DOUBT, FOLLOW P.I.P, which many readers know stands for Proper Investment Procedures. The stock market in recent weeks has assuredly been confusing, with the last two weeks taking the cake in that regard. Sell signals followed by buy signals followed by a Dow Theory sell signal (sort of), followed by an enormous 900+ point rally in the Industrials. What’s an investor to think?
Well, I’m not going to revisit the “did we have a Dow Theory sell signal or not?” debate, as I laid the case for that out in last week’s column, and right or wrong – there’s little new to add. Our parameters are clearly set, and we’ll just see if this sell signal works out or not. New closing highs on both the Transportation and Industrial Averages (bettering 8676 and 17,230, respectively) shift us back into a Bull Market, while new closing lows on both Averages (below ... Log in or subscribe to continue reading.