Ascot Wearing Gentlemen Wrong Again

I subject NFTRH subscribers to my warped sense of humor, so why not you dear free website reader?

So, there is this particular market participant; he is a mature gentleman of much respect and great dignity. He wears an ascot and smoking jacket. He sits in a well appointed study with dark woodwork, doilies on the polished wooden surfaces, shelves and shelves of old books and to the side, right next to his solid (aged) oak desk is a little tray with a snifter of cognac at the ready.

Down the hall in the kitchen is his elegant, yet dutiful wife. Let’s call her Mable. She prepares the evening’s Beef Wellington and has it and all the side dishes and a fine red wine at the ready for the moment the gentleman has concluded his work for the day and is ready to emerge from his great room after doing in depth work, coming to profound conclusions.

This my friends is the Dow Theorist. He of the esoteric sounding technical discipline… that just happens to be wrong every damned time we hear about it!

Here is the chart we use in NFTRH’s Market Internals segment, not to gauge the possibility of a Dow Theory non-confirmation for the market, but to gauge the process of one non-confirm after another getting debunked. Time and time again we’ve seen the Dow rise to new all-time highs only to observe an oh so scary “non-confirmation” and hear talk about it in the media. Then? The damn thing confirms. Today being the latest example.

dow theory

Please move along, nothing to see here. The market may well top but it will not be because of this old fashioned indicator.

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