Friday, April 24, 2020

#Dow Transports Review $IYT

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

Subscriber Comments

ALIGNMENT (Price & Volume)

The Dow Transports primary trend has been down for 3 months and 17%. US stocks rally from the March low raise concern for the bulls, because the Dow Transports and Russell 2000 are lagging badly. The Nasdaq 100 to Russell 2000 ratio extreme out performance highlights this reality. The invisible hand tends to punish false assumptions will devastating losses, so caution on the bull side must be maintained.

Nasdaq 100 to Russell 2000 Ratio.

ENERGY (Diffusion Index)

No Energy

Participation (ProIndex)

The Dow Transports ProIndex has been falling sharply recently. This suggests aggressive professional selling recently. Disciplined traders are watching for a bearish divergence, a breakdown in the ProIndex to new lows ahead of price. Bearish divergences often provide warnings ahead of declines.

Dow Transports Pro & Public Index

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Market-driven money flow, trend, and intermarket analysis is provided by an Access Key.