por admin » Mar Mar 05, 2013 1:37 pm
Los teoricos del Dow Jones se regocijan de sus pronosticos, tanto el transports como el Dow Jones, los dos juntos estan en territorio record cual confirma la tendencia alcista.
Dow Theorists Licking Their Chops
By Steven Russolillo
Associated Press
Followers of the century-old Dow Theory are rejoicing about Tuesday’s market’s moves.
With the Dow industrials surpassing their record closing high, they have joined their counterparts — the Dow transports — in hitting new highs simultaneously. The fact that both trends are moving in sync confirms the market’s upward trend and should bode well for future returns, Dow theorists say.
The symbiotic relationship between the two indexes is a clear sign to Dow theorists that the economic message and the market outlook are moving in tandem. The idea is that making goods is one leg of the industrial economy and moving those goods around is the second leg, so their trends should be in sync.
The last time the Dow industrials and the Dow transports both closed at record highs was July 19, 2007, according to WSJ Market Data Group. If the gains hold, Tuesday would mark the 250th time both indexes closed at new records on the same day.
The Dow Jones Transportation Average—a 20-member index of airlines, railroads and trucking companies–recently rose about 2% and earlier hit a new intraday record high of 6162.49.
The Dow Jones Industrial Average recently rose 140 points, or 1%, to 14268, surpassing its previous closing high of 14164.53 on Oct. 9, 2007.
Assuming the gains hold, the Dow would have gone 1,004 tradings days between the bear-market low of 6547.05 on March 9, 2009, and today. That’s good for about a 118% gain.
Nine Dow components are hitting new 52 week highs on Tuesday — American Express AXP +2.15% Boeing BA +1.43% Walt Disney DIS +1.34% Home Depot HD +0.24% Johnson & Johnson JNJ +0.49% JPMorgan Chase JPM +1.33%, 3M Pfizer PFE +1.73%, and Travelers Cos.