Richard Russell, author of the Dow Theory Letters, has his eyes on a Dow index. And it’s not the Dow Jones Industrial Average.
He writes in King World News:
[S]uppose there was an Index that portrayed the industrial capabilities of the entire civilized world? Happily, we now have just such an index. Dow Jones developed it, and they call it GDOW. It’s made up of 150 major blue chip international stocks, and it includes all 30 D-J Industrial stocks plus over 100 other major international blue chips.
I intend to keep my subscribers abreast of the action of the important GDOW. Let me put it this way. As long as GDOW holds above 1700, we can rest assured that the world is all right. But if GDOW breaks below 1700, my instinct is to ‘run for the hills.’ We live in an international world today. All nations are now connected closely in a way that they have never been before in history.
This makes GDOW maybe the most important single index ever conceived by man.
He warns that the GDOW is forming a “potential” head and shoulders formation, a technical pattern that could soon signal really bad news for the global stock markets.
Separately, Russell’s piece also includes some of his very depressing memories of the Great Depression.
Read the whole thing at KingWorldNews.com.