Tom Dorsey On Why We’re At Start Of 20-Year Bull Market

TL;DR

In this episode of Investing with IBD, Tom Dorsey discusses the current market trends, the importance of using relative strength for investing, and the benefits of having a system in place. Dorsey explains how his point and figure chart system helps remove emotions from investing and allows for a more disciplined approach.

Transcript

okay everybody welcome to Investing with IBD for November 6 2019 I'm your host Irusha Pierce and with me today is Tom Dorsey founder of Dorsey right election and technical analysis and an evangelist of point & figure charts thanks for being here Tom that's my pleasure on today's podcast we are going to talk about the current markets the importance ... Read More

Key Insights

• 🥺 Negative sentiment in the media can lead investors astray. It's important to rely on indicators like the New York Stock Exchange bullish percent to gauge market strength.
• 😥 Relative strength and point and figure charts help remove emotions from investing and focus on the best-performing stocks and sectors.
• 👻 Technology has made portfolio management and analysis more efficient and allows for running models on a large scale.

Questions & Answers

Q: How does the New York Stock Exchange bullish percent work as a market indicator?

The New York Stock Exchange bullish percent calculates the percentage of stocks on the NYSE that are on point and figure buy signals. This indicator provides insights into market strength and can help determine market trends.

Q: How does relative strength help in picking the best stocks to invest in?

Relative strength compares the performance of different stocks or sectors, indicating which ones are the strongest. By analyzing relative strength charts and using point and figure charts, investors can focus on the top-performing stocks, removing emotions from the decision-making process.

Q: How does technology enhance portfolio management and analysis?

Technology allows for faster analysis of charts and the ability to run models on thousands of stocks and sectors. Alerts and notifications can be set up to inform investors of any changes or signals, making portfolio management more efficient and less time-consuming.

Q: How does Tom Dorsey's system use point and figure charts and relative strength calculations?

Dorsey's system uses point and figure charts to track stock movements and relative strength calculations to compare the performance of different stocks. This combination helps identify the strongest stocks and sectors, providing a disciplined approach to investing.

Summary & Key Takeaways

• The current market is in an uptrend, with new highs on major indices and more stocks hitting new highs. Despite negative sentiment, indicators like the New York Stock Exchange bullish percent suggest a positive outlook.

• Using relative strength calculations and point and figure charts, Dorsey's system helps identify the strongest stocks and sectors to invest in. This system removes emotions from investing and allows for a more disciplined approach.

• The power of technology has made analyzing thousands of charts and managing portfolios easier and more efficient. Dorsey discusses how he runs models in different markets, including Indonesia, and lets the system make changes based on signals.