Is there is a better alternative to the Dow theory?We are going to demonstrate via numerous charts that the alternative Dow theory is far better than the current Dow theory. Let’s start off by looking at some old long-term charts of the Dow Transports, utilities and Industrials to see what they are saying. Once upon a time, the old Dow theory made sense, but times have changed and the old Dow Theory no longer works. Central bankers worldwide are actively rigging the markets to create the impression that all is well; for the most part, the masses are falling for this con game.
The Dow Utilities More Important In Updated Dow Theory
The Dow theory states that the primary relationship is between the Dow and the Transports, but in our view, the utilities appear an even greater role. The 1st chart is of the transports, the second of the Dow industrials and the third of the Utilities.
Is there is a better alternative to the Dow theory?
This chart starts from 1969 and carries on to November 1981. If we go three years back to 1966, we see that the Utilities were the first ones to put a high back in 1966 after that they just kept testing the highs (looks like a triple top). The Transports put in a new high around the middle of 1967 and then trended sideways. The industrials only put in a new high towards the end of 1969 and then started correcting.
The charts below show that all three proceeded to correct around the same time, but the three indices topped at different times. As we stated before there is a relationship between all three indices, though the utilities seem to interact with the other two best around market bottoms and not so well at market tops.