Category Archives: Market Barometer

The Market Ratio: April 2023 #MarketRatio

Posted on May 3, 2023 by | 2 comments

At the end April, our market barometer reverted back to upper limit. Such action suggested that we should focus on small-cap. Continue reading →

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The Market Ratio: January 2023 #MarketRatio

Posted on January 22, 2023 by | Leave a comment

In October 2022, our internal market barometer suggested that we focus on large-cap or blue chip companies. At the end of December 2022, we started to see a shift in that barometer. Continue reading →

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The Market Ratio: October 2022 #MarketRatio

Posted on October 12, 2022 by | Leave a comment

Our team introduced the concept of Market Ratio back in 2020 as a barometer to oscillate between blue chip vs speculative stocks. After some careful consideration and backtests, we’ve determine that this simple, yet effective strategy, has outperformed the S&P 500 by 3.5% on an annual basis. Continue reading →

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Market Update–April 15, 2022

Posted on April 16, 2022 by | Leave a comment

Market remain on shaky ground after giving back 1.8% this week. Year-to-date, S&P 500 lost 8.4% and the Dow fell 5.8%. All major indexes are now trading less that 10% from the low (see first chart). Our Market Score (second chart) rebounded back to 0 and we continue to see this as bearish to neutral. A reading of –5 or lower would mark a buying opportunity with tremendous upside and limited downside. Continue reading →

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Posted in Market Barometer, Market Update, NLO Market Indicator, NLO Market Score

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Market Update – March 8, 2022

Posted on March 8, 2022 by | Leave a comment

Below is the market update as of March 8, 2022. Continue reading →

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Market Update – March 4, 2022

Posted on March 4, 2022 by | Leave a comment

There are no surprises that we all major indexes are declining. One of the factor we monitor is the market internal which look at the % from the one-year low. The chart below display the weakness which started when the Russell (RUT) broke below one-year low on 1/19/2022.

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Our team will provide an update on the market based on Dow Theory this weekend.

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Posted in Market Barometer, Market Update, NLO Market Indicator, NLO Market Score

Dow Theory

Posted on July 21, 2009 by | Comments Off on Dow Theory
Today the Dow Jones Industrials reached an intraday high of 8927.13. This exceeds my prior Market Barometer target of 8774. For some reason the Industrials are able make higher highs. Unfortunately, the Dow Jones Transports continue to fail to breach the upside target. The Transports fell to 3360.14.

According to Dow's Theory, the action of the Transports is the most resounding evidence of the market's inability to go higher on a sustained basis. Each time the Transports get close to the 3405 level we get a pullback in the market. Additionally, the Transports fall by a greater percentage than the Industrials making it much harder to recover from any declines. We need full participation of the Transports to feel confident about the market direction being up.

I have changed the Market Barometer upside target for the Industrials to 8928. I don't see (showing my limitations) the Industrials going much farther than 8928 without the Transports exceeding the 3405 level. Touc.

Please revisit Dividend Inc. for editing and revisions to this post.

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Posted in Dow Theory, Market Barometer, update