Dow Theory in Motion

As technicians, we love to talk about Dow Theory.

One of its most important principles is the concept of confirmation—the idea that major averages should be trending in the same direction.

And right now, that’s exactly what we’re seeing.

Here we have a clear view of it:

The Dow Jones Industrial Average—the companies that produce the goods—is making new all-time highs alongside transportation stocks—the companies that move those goods.

To that classic framework, I also include Semiconductors, which are just as vital to today’s economy as anything else.

When all of these groups are trending together—and that trend is higher—that’s when money tends to get made.

And that’s precisely the environment we’re in right now.

The market is firing on all cylinders, and this confirmation reinforces our view that investors are firmly on offense.

And when offense is on the field, we need to be calling offensive plays.

That’s why strategies like Breakout Multiplier exist—to add juice during periods like this, when momentum is working and breadth is expanding.

We kicked off the year strong, already locking in two 10x trades in $FCX and $PL.

And all four of our China trades have doubled, at a minimum.

This is not a market to be sitting on the sidelines.

Join us and don’t miss the next options trades with unlimited upside potential. Click here.

Alfonso De Pablos, CMT

Director of Research, All Star Charts

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