has the bear market ended ?, page-21

skankr

The reason why Charles Dow put so much importance on the Transport Index was that it reflected the movement of goods around the countryside. In the 1930's it was railway stocks that shifted the goods - nowadays less so. I guess a stock like Patricks would be the type of stock to represent the index nowadays with its mix of shipping, rail and airlines

However there is some validity to the debate that the movement of goods still represents the real economy -after all Australias economy has hardly faltered whilst a tech crash has been going on.

The info I did get on Dow Theory (via Securities Institute) did place a question on the use of the Transport Index in modern day terms and whether it was still valid, and did not necessarily push Dow Theory as a trading method in itself, but one of a set of tools.

As to short or long term - I see the principals of peaks and troughs and whether they are higher or lower being used on all sorts of timeframes.

Cheers
ACTURTLE