Saturday, January 12, 2019

#Dow Industrials Review $DIA

Dow Ind Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to long-term trends, it does not define them. The focus on short-term noise rather than trends, a source of confusion for the majority of investors, leads to the creation of bagholders at major trend transitions.

The Dow Industrials' overall trend, revealed by trends of price, leverage, and time, are defined in the The Matrix for subscribers.

Subscriber Comments

Question:

Wow. DY and LCSAI LTCO bullish setups but LCSAI C4 bear alert. Matrix says secular bear coming after short term rally... ?

Reponse:

Dividend yield is the most accurate of the long-term cycles. Dividend yield's C1 and C2 cycles bottomed below 2 in February 2018. This was the first intermediate sell signal, a sign to reduce risk at least short-term. Intermediate sell signals are generated when C2 > 2.

C1 = 2.76 and C2 = 1.18 after the December decline. C1 = 2.76 suggests at least a short-term bottom. LCSCAI C4, a long-term cycle for the S&P 500, frames the short-term buy signal within longer term extended reading. C2 > 2 is possible if the December lows are taken out. C3 > 2 and C4 > 2 requires a lot more selling and a painful secular bear market. For that to happen price will have to fall below the lows generated when C2 > 2. At this point, we need to see of the December lows hold. If they do, it's a C1 correction only. If not, additional selling will push C2, C3, C4 higher. C3 and C4 > 2 will be a powerful signal that the old traders called "buying when there's blood in the streets."

Chart


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