Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Terry Whitman who wrote (9193)	3/26/1999 5:45:00 AM
From: bearshark	Respond to of 99985

Terry: Under Dow Theory "no valid signal of a change in trend can be produced by the action of one Average alone." (Edwards and Magee) Without going back to look at my post from several months ago, I also concluded that the TRAN had entered a bear market last year. So you are correct, we do have a divergence. The INDU could collapse through all of the support and confirm the TRAN. I do not ignore that possibility. Nor do I ignore the possibility of INDU 11000 plus.

To: Terry Whitman who wrote (9193)	3/26/1999 7:48:00 AM
From: bearshark	Read Replies (2) \| Respond to of 99985

Terry: Some time back a fellow told me he no longer thought that the confirmation part of Dow Theory was valid. As you know, the fundamentals behind that part of the theory tie the Industrials together with the Transports because Industrials make the goods and Transports move the goods. The fellow's point was that today we have a different economy. Specifically, he noted the difference in the Transport's airline component--from a product-moving industry to a people-moving industry. I guess we could respond that railroads once carried the people that airlines do today. We have had the divergence between the INDU and the TRAN for quite some time now. I guess we just have to remain on the alert to the possibilities.