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Critical Dow Theory Announcement – A ‘New Henceforth’ Arises (TPOR, DUSL)

Posted on June 2, 2022

Today’s trade locks in a minimum win of $3.20 on nothing expended.

There’s much to say about Dow Theory, but, unfortunately, now is not the time.

For those with the inclination, we’ve written about it in varying degrees of depth HERE, HERE, HERE, HERE and HERE.

Google it, if you’re not satisfied with our rather brief talking points – again, entire books have been written and whole blogs dedicated to the proposition that market direction can be determined by the relationship between the Dow Industrials and Transports.

It’s worth investigating.

We’ve seen enough evidence in our nearly thirty years in the markets to know that it’s worth abiding.

What is it?

In two sentences –

  • The two averages – the Industrials and Transports – will move together, generally with the trannies in the lead.
  • When they confirm one another (either higher or lower), the market will move for an extended period in that direction.

Again, that’s a back of the napkin sketch – don’t judge us on brevity.

The question, of course, is whether it’s tradable.

And the answer is both yes and no.

What the…?

No, we’re not trying to be smart-alecs – it’s like this…

The primary trend of a Dow move is generally years-long; it’s often referred to as the ‘secular’ trend.  Within that primary move, there may be retracements that last months or longer – even much longer.  So it’s hard to trade the theory on a short-term basis.

For the most part, Dow Theory offers the broadest framework for those wishing to trade the market.  It’s not for swing- or day-traders – nor even for we who trade the intermediate trend, though we find it very useful, indeed, in our daily deliberations.

It’s rather for those who wish to know if we’re in a primary bull or bear market.

That’s it.

And that’s information it pays to know.

We’re going to map things out for you in more detail below, but first an apology to all those yet-to-subscribe who are now reading.

This is big.

Too big to just give away to those who haven’t yet paid for it.

So, we apologize, good Jews and Noahides.

Torah is first, of course.  And after that good health.  Then comes parnassa.

Both yours and ours.

HERE’s a link to our membership page if you want to have a look at what follows.

If not, again, we apologize for the withholding.

And consider well: there’s $3.20 on the table NOW for those who initiate the trade today.  And possibly much more.

Take a look –

Does it get any better than that, folks?

Does the G-d of Israel provide?

Please, good Jews and Noahides, pony up and walk home with your $3.20 mimimum!

Maximum gain on the affair is $49.85 (17.85 + 32.00).

You can’t lose!

Many happy returns!

Matt McAbby

4 responses to “Critical Dow Theory Announcement – A ‘New Henceforth’ Arises (TPOR, DUSL)”

  1. Curt Wise says:

    I don’t get how the DUSL TPOR trade can’t lose.
    Assuming one contract.
    1. I short DUSL and collect $3135
    2. I put out $410 on the 39 DUSL call
    3. I put out $420 ($970-$550) on the TPOR synthetic short
    4. I put out $520 for the TPOR 39 call
    5. As noted in the trade I have $1785 left.
    6. If DUSL and TPOR stay where they are from now through expiration, all the options expire worthless and to close this I have to put out $3135 to buy DUSL, so I am out $1350.

  2. Matt McAbby says:

    bs’d
    Hi Curt,
    We appreciate you writing us on this.
    Others, too, questioned the possibility if a trade being too-good-to-be-true.
    It was.
    We’ve sent corrections to all subscribers. Please check your inbox for the new numbers.
    Matt

  3. I am still in DUSLand at a loss because the agent helping me put me in it first and then could not get me in the rest of the trade. What do you recommend?
    David

  4. Matt McAbby says:

    bs’d
    Hi David,
    Happy to help.
    Just not sure which half you’re in and what the details are.
    Can you give us some numbers?
    Feel free also to write us at mattmcabby@ajewandhismoney.com
    or
    hughlohaynew@ajewandhismoney.com
    Look forward to a successful recovery!
    Matt

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