Modern Dow Theory

I love the research from The Leuthold Group.  Their Green Book is a like a present showing up every month in my inbox.  I was going to write a white paper on Dow Theory, a simple trend following approach that has been around for 100+ years.  But, this simple chart below sums up the entire paper without my writing it – thanks Leuthold!

Overlay a simple moving average on the S&P and the Dow, and voila!  The trend is your friend…

via Leuthold