Up, Up, and Away?
Catching up on Dow Theory ...Yesterday we got a Dow Theory "buy" signal. Whether this is a bear market rally (likely) or the start of a new bull market (less likely), the short term indicators are that the market will go up. It is a reasonable time to add to a position in DIAs (hopefully with better results than I got in January). Everyone seems to agree. Richard Russell , Jack Schannep , and even Charles Allmon (who is a sage advisor but not a Dow Theorist) all say the market should now rise, though caution is warranted. From a strict charting point of view , however, the technicals are looking rather extended to me. The RSI has been around 60 since March 23 and the MACD is looking peaked out. So, I'm not sure there won't be some kind of at least mild correction to the down side soon. But, that's just me - what do I know. No more DIAs for me though. I might buy more gold , however. It is showing some weakness right now but the support is basically holding