Back in the late 1800s, a journalist in Springfield, MA named Charlie Dow was having a hard time learning about what companies were doing, states JC Parets of AllStarCharts.com.
He'd knock on doors and business owners would say, "Our business is none of your business." So Charlie went back to the drawing board and decided that the best way to get a better understanding of the direction of the economy and stock prices, was to create two separate groups. The first group would be a list of companies that produced the goods. These would be the "Industrials."
The second group would include the list of companies that delivered those goods. He called those the "Railroads". Down the road, as new technologies emerged, the Railroad Index became the Transportation Average. Decades later, these indexes were renamed the "Dow Jones Industrial Average and Dow Jones Transportation Average".
But here we are in 2023. Do companies deliver goods and services using railroads, or even some of those other methods of Transportation? Yea a little, but not really. We use the internet. We use computers.
Semiconductors facilitate the modern method of delivery. So here's my Dow Theory 2.0 chart which includes Semiconductors as well, not just the Industrials and Transports:
They look similar, don't they?
When you zoom out, do you see higher lows and higher highs? I do. Last night was our LIVE Strategy Session that I host at the beginning of each month. Not only did we talk about this chart above, but I also went through over 165 of the most important charts and trends in the market.
I can't remember the last time we had this many opportunities. Traders and investors have been caught offside because they've been focused too much on narratives and what the fed is doing, instead of just focusing on reality.
Do you read the glorified gossip columns to get your information? Or are you here to get paid? If it's the former, then you've come to the wrong place. We're only focused on what pays us, and that's price.
You're seeing the results in real-time!
To learn more about JC Parets, please visit AllStarCharts.com.
