Do New Highs on the Dow Mean Anything?

SYNOPSIS

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It was another lacklustre week, historically low on volatility… what many call the summer doldrums. And yet more new highs on the Dow Industrial Average. Trading volume was low, and we’ve been relying on quarterly earnings reports for any spark of life in the markets. Apple Inc (AAPL), for instance, had a nice one-day price boost of 6% the day after it reported its latest earnings last week. Now, let’s put that 6% in perspective. That’s an extra $48 billion added to Apple’s market cap in one day! And that $48 billion increase alone is larger than the entire market cap of Ford Motor, and 390 other companies in the S&P 500! Apple is poised to become the world’s first trillion dollar company, perhaps within the next year. That’s big!

PTP… Our ProfiTrend Portfolio APAR (annualized price appreciation rate) dropped to 55% from 73% a week earlier. That’s still ahead of the S&P 500 APAR at 13%, and the S&P/TSX Composite Index APAR which turned negative again at -1%.

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Last Week in the Sectors… Just 5 of 10 sectors have positive trend values among the S&P 500 companies. It’s 5 of 11 for the S&P/TSX Composite Index. All trend values in both markets are disappointingly close to zero right now. It’s a stretch to recommend one sector over another.

wpid-url-2017-08-8-14-23.png PTA Trend/Consistency Lookup Console Now Available! Last week we announced a new item to the submenu of Toolbox at the (members only) ProfiTrend Advantage web site. It’s labelled T/C Console in the submenu, and it takes you to a page where you can look up the trend & consistency values for a subset of all of the Premium Services Databases without paying the Premium Service fees. 10,000+ equities! We hope that you’ve tried it out, and find it useful. We could definitely use some feedback, so try it soon, if you haven’t already. If popular, the platform that we’ve used for the T/C Console may also pave the way for us to add other interactive tools at the web site… the kind that we currently use on our premises on stand-alone computers.

PTA Perspective… Do New Highs on the Dow Mean Anything?
With the latest streak of all time highs, especially in the Dow Jones Industrial Average, we’ve decided to have a look at whether this should be a reason to worry or rejoice or neither.. because it could be coincidental. The best evidence we share with you today suggests more profits ahead!