Why the Dow Theory Has Put the Stock Markets on Alert

Why the dow theory has put the stock markets on alert. What happens when the major stock markets like the S&P rally higher and make new highs, but one key index does the opposite and keeps trending lower? One of the most important elements of stock market analysis is called the "Dow Theory" - which places the transportation index as very important. This is because transportation is very sensitive to shifts in the economy. So what does it mean when the transportation idex does not confirm the stock market rally and diverges from it? Could it be a warning sign, according to the dow theory? We look at the charts and discuss with Manuel Blay, co-editor of the Dow Theory newsletter. #StockMarkets #SP500 #AlessioRastani

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[sukhmandersingh]

Thank you so much for this upload alessio,
Binge watching all of your recent videos uploaded in the past months.
Thank you for keeping us updated.

[AJD-Home]

I have just shared this video to my social media and accompanied this narrative Alessio. Thank you.

It is rare I choose to recommend people or services so when I do you should trust me.
I have no hesitation recommending this guy having followed him for circa 3 years.
Alessio is one of the best technical analysts out there. A true gem in all of the noise and opinion online.
Objective, fair and often accurate in his predictions and forecasts. The vast majority of his content is to the point and supported by reasoning.
When you want actionable opinions find experts and avoid the noise from the crowds. There is sentiment analysis for that... And contrary to most people's belief you are often best being contrarian to the sentiment to make money in the markets.
Currently, I am not trading but have training in it, have traded in the past, will trade again in the future and have a flare for interpreting information, data and graphs (been doing this much of my life).
This post is to help those out there, and there are many of you on my friends list, who are trading today.
I'll be focussing on property, M&A and driving business performance. I have long term, goals to achieve and have no choice, as I have chosen. My 'Why?' is strong.
Maybe an educated swing trade or 2 on the markets might do some good mind you. Usually has in the past.
All the best people.

[marshallfranklin]

In the past, Ray Dalio has also argued that the U.S economy will be in trouble, the exactly the opposite, as America’s bombing boom over the next decade, Ray Dalio Lost its reputation and went bankrupt.

[ZackGPTOfficial]

While I think this video had great analysis, there was no mention (or little mention) of COVID-19. The drop last year clearly correlates to the breakout of the pandemic. As the pandemic began to pick up strength in recent months, its no surprise that the transportation index would falter. It's not to say there could be other underlying causes here, but to me COVID-19 would've been something worth bringing up Alessio.

[suquin]

Hi will be much appreciated on where to look for the Transportation Chart in the video. Thanks

[rogeratkinson]

Always ahead of the market, Thank you Alessio.

[Historyprepares]

how can i look up the dow transports on tradeview? what do i type? thanks

[Charvo]

Transports can also be used to identify short term tops in the S&P

[dmitrytreschev]

А very useful observation, but on the other hand, one should not overlook the fact that the market is largely driven by digital giants, and their operating results have little impact on the Transportarion index.

[napoleanmacro]

Thumbs up and a comment before watching the video. Thank you for your time Alessio. 🙏🏽

[danielhern]

Was there any correlation leading to the GFC?

[realmusic]

Could this analysis be skewed because of supply shock?

[baba]

Is it possible that dow tranport data is skewed beause of new covid varaiants and people not traveling? I mean airiines are a major part of dow transport right?

[anants.]

Allesio, why is the divergence not visible on the slightly long term comparison chart of Transportation and S&P? In the shorter term chart the divergence commences from May 2021 onwards, but in the slightly long term chart there is no divergence till end July 2021. Please revisit and let us know the reason. (eg scaling of charts, log. scale etc)

[j-dub]

In 2020, there was a one month lag and in 2000 there was an 11 month lag between the start of the non-confirmation and the literal top of the S&P. Right now we have 3 total months of non-confirmation.

[nnm]

Why you compare Dow Transportation index wich based on real estate companies with SP500 with almost based on IT companies ?

[imeldomarcos]

Interesting, you never cease to make good points.

[MadhupanVivoboom]

what about semi conductor shortage in the transportation industry?

[harikrishnank]

But half of S&P is digital. Do you think this theory applies to the current time @Alessio

[jvw]

Transportation is the leading indicator. Always the first to feel the effects of the market