There is a constant conversation among market participants about which indexes are the better representation of the stock market, particularly in the United States.

While the media often quotes the Dow Jones Industrial Average daily changes, professionals tend to steer towards the S&P500.

The argument normally revolves around the price-weighted nature of the Dow Jones Industrial Average vs the market-cap driven S&P500.

The diversity of 500 stocks in the S&P is also a key point when compared to just 30 stocks for the Dow.

Today, I just wanted to remind everyone why I think the Dow Jones Industrial Average is underrated and why I think it is still one of the most useful indexes for any stock market participant.

High Positive Correlation With The S&P500

First of all, the Dow Jones Industrial Average and the S&P500 have a very high positive correlation to one another.

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

In yesterday's note we talked about how the Dow Jones Industrial Average went up in price for the 2nd consecutive week. This isn't something we've seen happen too often in 2022.

But what else happened this week?

Well, we got fewer stocks making new 52-week lows on the NYSE. The peak in new lows was back in June, which was 4 months ago.

You can see it in shorter-time horizons as well. Look at the S&P500 new 63 day low list continuing to deteriorate (63 days = 3 months = 1 quarter):

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

These are the registration details for our live mid-month conference call for Premium Members of All Star Charts.

Our next Live Call will be held on Tuesday October 18th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Tuesday night:

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs. We’ve also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

From the Desk of Ian Culley @IanCulley

The commodity markets never lack action. 

Since it’s such a diverse asset class, we’ll always have contracts we want to buy, some that we want to short, and others we want to avoid.

Today, I’m going to outline one of each. Let’s dive in!

The Breakout

According to the latest reports, Hurricane Ian (strong name, terrible storm) may have cut the Florida orange crop in half.

Whether it’s true doesn’t matter. I’m more concerned with a well-defined level to trade against. Check out the daily chart of orange juice futures:

The chart looks good to me! A five-month base breakout to fresh five-year highs is the kind of strength I like to buy.

From the Desk of Kimmy Sokoloff

It's like Thursday never happened.

I was looking for a consolidation, with a possibility of $SPY 364 to hold roughly.

That was not the case.

From the Desk of Willie Delwiche.

Labor Pressure Eases - Is Inflation Next?

The Chart: 

On the labor front, job openings turned lower in August and the Atlanta Fed’s Wage Growth Tracker for September seems to have followed suit. On the inflation front, the year change in the median CPI reached another new high (its 7th in a row) in September.

Why It Matters: 

While this certainly is not the market environment to be taking aggressive long bets in, there are some stocks that are displaying tremendous relative strength that we can play with strictly defined-risk positions to protect ourselves.

Our Young Aristocrats Report shows us stocks that aren’t just paying dividends but are doing so while they’re going up and thus paying us via price appreciation as well.

And this week's report serves up a great opportunity.

There are a lot of trends in markets that are worth paying attention to.

Remember, asset prices trend. They're not random.

We have the data.

So one major trend we want to make sure we're not ignoring is in Energy stocks relative to Technology.

Look at the ratio between them making new multi-year highs, yet the S&P500 weighting in energy is still less than 5% of the entire index. But Technology is still almost 25% of the index.

Is that weighting sustainable?