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Definition of Dow Theory – A theory which says the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other.
With a wild October now in the books, I wanted to share a quick update on the big three Dow Indexes at the end of the month.
As you can see in the chart above, all three closed at “monthly all-time highs” at the same time.
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My good friend Ryan Detrick put this chart together, which shares that during the 6th year of a presidents term, the average gain between now and the end of the year is around 7%.
Will the combo of a Dow Theory buy signal and strong seasonal performance increase the odds of a Santa Claus rally? Stay tuned!!!
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