A method of measuring the strength of the market by focusing on the interplay between the Dow Jones Industrial Average and the Dow Jones Transportation Average. This theory was introduced by Charles Dow in a series of editorials in the Wall Street Journal more than 100 years ago around the turn of the century. The theory states that a move in one of the key indexeis "confirmed" and validated by a move in the other index. Example: A new high in the DJ Industrial Average is validated by a new high in the DJ Transportation Average, whereas a failure by the DJ Transportation Average to make a new high renders the move by the DJ Industrial Average suspect.

Strategy Session October 16th, 2013

View Entire Video (38:49)