Checking in on Papa Dow

JC Parets
June 29, 2021

I was taught early in my career to never fight Papa Dow.

You know what I used to do all the time early in my career? I would constantly be fighting Papa Dow.

"It's only 30 stocks", I would argue.

"It's a global market", is what I would say.

Guess what?

Never fight Papa Dow.

Thanks Ralph

The Dow Jones Industrial Average is the world's most important stock market index, followed by the Dow Jones Transportation Average.

Here's an old post about how the Dow is underrated.

Anyway, fast forward to today and we have the Dow Industrials hitting our upside objectives in early May:

Meanwhile, the Dow Jones Transportation Average is doing the same thing.

These are the extension targets from the 2018 highs, when risk peaked all over the world:

In both cases, we see the indexes stuck below overhead supply.

How long will it take to resolve?

Will they resolve higher and begin a new leg higher? And if so, how long from now?

Or will we continue to see them under pressure?

Remember, these are tactical struggles. The longer-term trends in both of these are still up. But they haven't been for almost 2 months now.

Time flies when you're getting chopped up.

I know that because I've been chopped up in messy markets like this before. It's not fun.

Last week was our Live Monthly Conference Call where we went over all of the most important charts, including Small-caps, Nasdaq and Global Markets.

Shoot me a note if you have any questions or comments.

We love to hear from you!

JC

 

 

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