The Dow Jones Industrial Average just went out at new All-time weekly closing highs. The way I learned it was that, “We Don’t Want To Fight Papa Dow”.

One thing we know for sure about new All-time highs is that they are NOT a characteristic of a downtrend. When you go back and find all the best downtrends ever, you’re not going to find many new all-time highs in those trends. In fact, you won’t find any.

And as a public service announcement, if you’re one of those people who approaches life with the mentally that all downtrends start with new all-time highs, please unsubscribe. You’re clearly not listening to anything I’m saying and it’s probably just better that you go away.

For the rest of you who finished 3rd grade math class successfully, here’s the chart of the Dow Jones Industrial Average making new all-time highs: [Read more…]

Over the years, Diwali has become one of my favorite Indian festivals!

As I’ve come to understand it, Diwali symbolizes the spiritual victory of light over darkness, good over evil, and knowledge over ignorance. Those are all things I can get behind.

So from all of us here at Allstarcharts, may the candlesticks illuminate your charts for another year! [Read more…]

Is it time to buy the Travel, Leisure & Entertainment stocks?

I don’t necessarily think we need to own all of them. But if we focus on the ones with the most relative strength and positive momentum, we should be in a much better position to succeed. In other words, if we can find the ones that don’t look like most Travel, Leisure & Entertainment stocks, then we could have a winner!

First of all, here is the Dow Jones Travel & Leisure Index (can’t trade it) overlaid with the Leisure & Entertainment ETF $PEJ (can trade it) so you can see how similarly they move. I also included some of the fun facts about $PEJ from the Fund Factsheet. [Read more…]

Do stock market crashes normally happen when investors are expecting one?

I’m pretty sure it’s the opposite of that.

Well, this is the chart being passed around this week. We’re looking at the United States Crash Confidence Index, where fewer than 15% of respondents think NO crash is going to happen.

So in other words, almost 90% of respondents think “a catastrophic stock market crash in the U.S., like that of October 28, 1929 or October 19, 1987, is probable in the next six months, including the case that a crash occurred in the other countries and spreads to the U. S.” [Read more…]