One week it’s the Dow Jones Utility Average pulling the weight. This week it was the Dow Jones Transportation Average up over 2% while the Dow Jones Industrial Average was basically flat. It’s always one of them, which is why the Dow Jones Composite Average, the combination of all of them, continues to hold up so well. Remember the DJ Composite has 65 stocks, 30 from the DJIA, 20 from the DJTA and 15 from the DJU. The Dow Jones Composite Average went out at new all-time monthly closing highs just a few weeks back. Our bet is that this uptrend continues.
Here is a weekly chart of the Dow Jones Composite. These are the types of charts we want to be buying, not selling:
Look at the Dow Transports this week. We’ve been talking about how important it was for this index to hold those lows since June. This market continues to show support at those levels. If the world is really coming to an end, like you guys keep telling me, trust me the Transports will be below the Summer lows. They’re not:
I think if we’re above 8750 in the Dow Jones Composite Average, it’s hard for me to be bearish stocks. Until proven otherwise, this is a market where we want to be looking for stocks to buy, not stocks to sell.
This Tuesday evening is our Monthly Conference Call (Premium) and we’ll be talking about which sectors and stocks we want to be buying to make money into the end of the year. We have a lot to cover. It will be fun as always!