Monday, January 20, 2020

#Dow Industrials Review $DIA

Dow Ind Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to long-term trends, it does not define them. The focus on short-term noise rather than trends, a source of confusion for the majority of investors, leads to the creation of bagholders at major trend transitions.

The Dow Industrials' overall trend, revealed by trends of price, leverage, and time, are defined in the The Matrix for subscribers.

Subscriber Comments

Large followings on social media should not be confused with understanding. Understanding requires detachment and the removal of self from interpretations. That's not happening when interpretations turn into narratives or conspiracies.

Do not confuse narratives with trading discipline. Trading discipline, such as the Evolution of the Trade, adapts the changing message of the market. Narratives do not. Normally, I let blatant narratives go, because experts with large followings can easily discredit challengers. Social media influence, however, does not minimize their destructive power.

There is only what is, not what we believe DOES NOT MATTER! Professional detachment is impossible to establish that if under the influence of narratives selling opinion.

ALIGNMENT (Price & Volume)

The Dow Industrial's primary trend has been up 46 months and generated 65% gross return. This trend is not my opinion and it does not matter if a conspiracy theory or free markets caused it. Trading/investing, a game driven by price, volume, and the flow of time, is all about money.

The Dow's composite trend has been up for 29 days. While nearly everyone is citing why the rally should roll over tomorrow, the Dow's composite trend is not showing BuS or BuST readings above 2 across the three trading time frames. Sure, a correction is possible, but it's also possible that the conspiracy theorists get their fannies paddled a little longer.

ENERGY (Diffusion Index)

The Dow's DI is relatively neutral. Bulls are looking for bearish energy builds (blocking domes) to slow the rally.

Participation (ProIndex)

The Dow's Pro & Public Indices show both professional and public buying.

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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.