The article titled above was posted on ZeroHedge on Dec. 7, 2016. Written by ‘The_Real_Fly’ it provides a brief but helpful alert based on a well respected market signal.
An exceprt is;
‘…you should know that the Dow Jones Industrial Average and the Transports, aka “The Trannies”, both closed at record highs today. This sweet concoction of market ambrosia is called The Dow Theory Signal, and you should behold it.
This is widely revered as a bullish signal for stocks.’
His synopsis of the current signals, based on past performance, suggests some possible dramatic movements over the next four months. The author references the turn of 2014 into 2015.
Dow Theory triggered in November of 2014: SPY +2.75%
January 2015: -2.96%
Equals: Prepare for an immediate drawdown of 3%+, followed by gains of 0.84% over the next 4 months.
Make sure your portfolio is well hedged going into the New Year ! (Example: six month out Put options for the stocks/ETF’s in your portfolio.)