Slow grind lower

Look, I added a poll for you ---------------------------------------------------------------------------------------->
In an effort to better understand my audience and to get some interaction I've added a poll for you to participate in if you'd like.  I'm just curious what my audience's time horizon is so if you wouldn't mind choosing an option I'd appreciate it.  (No, I don't get paid for you clicking on it ;)


Today there wasn't much action in the market to speak of.  What I did find interesting was that the DJIA closed up 11 points and the S&P closed down 1.87 points.  My casual observation of these indices has led me to the conclusion that they should be approximately a multiple of 10 of each other.  For example, if the S&P is down 5, I would expect the DJIA to be down 50, plus or minus a few.  Today's closing values would indicate a notional 29 point difference (in DJIA terms) between the two.  That qualifies as "weird" in my book, but also makes sense in relation to one of the RumWave principles.

The reason I trade the DJIA and not the S&P is because it has been my observation that DJIA stocks are the last to move to the downside.  Often, the small caps (Russell 2000) and S&P start to decline before the Dow.  As a Dow trader, this gives me a warning signal to get out before the Dow starts to turn.  For additional situational awareness on today's action, the Russell 2000 was down .23% supporting the theory.  It will be confirmed if we start to see a larger decline in the mega-cap stocks (aka blue chips).

Here are today's scores:















The overall daily score moved out of the 1000's, we'll see if the market wants to continue lower tomorrow.

If you have questions, concerns, or thoughts about today's post email me: rumwavetrading@gmail.com

GOOD LUCK TOMORROW!