"Don't Fight Papa Dow", is how I learned it.

JC Parets
October 17, 2022

I don't know how you were taught to approach markets.

But I still have Ralph Acampora in my head. I can still hear him yelling, "Don't Fight Papa Dow!!"

He's referring, of course, to the Dow Jones Industrial Average, and respecting the direction of its trend, and its components.

We just saw back to back positive weeks for the Dow Industrials for only the 4th time in 2022. See here.

This weekend I published a note about how underrated I find the Dow Jones Industrial Average to be among traders and investors.

Not sure why people get so upset about the Dow. I find it really valuable and shared some of my favorite hacks here.

The Dow is not something I want to fight. In fact, I was specifically taught not to.

So here's what this looks like. You can see the Pre-Covid highs that were taken out in Q4 2020. And now here we are, back to the scene of the crime.

Roundtrip:

So is this just a pause before the next epic collapse?

Or will this just be a successful retest of those former key levels?

We'll be discussing it all tomorrow night, Tuesday October 18th @ 6PM ET on our Live Mid-Month Conference Call.

Premium Members make sure to register here, if you haven't already.

And ping me with any topics you also want me to make sure to cover.

One of my favorite parts about the Dow is finding liquid names with favorable risk vs reward opportunities. So the Dow is not just for identifying the direction of the overall market, but also in finding individual ideas.

Look at Caterpillar retesting those 2018 highs:

If $CAT is above the 2018 highs, this one is on our list of longs.

You can say the same about Chevron, except those 2018 levels are even more important as they are also the 2014 highs:

And don't forget about Travelers.

Same thing as above. Those 2018 highs are the key levels.

If we're above that then $TRV is front and center on our list of long positions.

There's a lot going on.

We're seeing strength building underneath the surface.

We're seeing weakness waning.

What about you?

What are you seeing?

Let me know what's on your mind.

See you tomorrow night. And if you can't make it live, the video replay and slides to download will be available shortly after the completion of the call.

But we encourage you to join us live so we can interact and you can ask questions.

Also, your comments are always hilarious and I enjoy them very much.

See you there!

- JC

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It's that important.

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