Australian Stock Market Poised for Record Run


By Dale Gillham and Janine Cox | Published 17 September 2019


This week Dale and Janine cut through the hype and hysteria about the Australian stock market potentially crashing to explain why it is poised for a record run using Dow’s phases of the market.

Charles Dow, the man who established the Dow Jones Industrial Average in 1896, was arguably one of the first analysts to truly define the commonalities found in bull and bear markets. He discovered that certain measurable trends evolved in the stock market over time. Unfortunately, he passed away before he was able to quantify and publish his full findings.

Despite this, a number of Dow’s associates combined his various workings into what we know today as Dow Theory.

According to Dow there are various stock market trends and patterns that unfold overtime, however, the principal focus of his work is to identify the primary movements in the market or what is referred to as bull and bear markets. Each primary trend encompasses three phases, which reflect the market behaviour you are trying to identify.

But the market behaviour is dependent on the timeframe you are viewing when you apply Dow’s phases of the market. Take a short term view of the stock market trends in 2019 and you will see why the experts are claiming doom and gloom. But when you take a longer term view, you will see why the Australian stock market is poised for a record run.


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