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relative strength

Daily Commentary

Indexes Trapped though NASDAQ Outperforms

Bycjrosen May 15, 2008

The US Markets remain trapped beneath their 200 day moving average but above their rising 20 period average. A breakout is likely, but in which direction will it occur? Let’s look at the SPY (S&P 500 ETF): The 200 period average is declining while the 20 is rising, and price is in a strong uptrending…

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Daily Commentary

Transports Outperforming Dow

Bycjrosen April 29, 2008

The DJ Transportation Index ($TRANS) is outperforming the Dow Jones index, which is an interesting development that has implications for Dow Theory. Dow Theory stresses the ‘confirmation’ between the DJ Transports and the DJ Index itself (meaning both must make a higher high to signal a ‘Buy Signal’ and vice versa). According to the theory,…

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