Dow Theory 50% Principal

The DJ Industrials Average closed below its November 20th low, thereby confirming the prior breakdown of the Transportation Average. Both averages closed to new lows, with the Dow closing below the halfway level (50%) of the 1982 - 2007 great bull market. If the market is a scale, it has now tipped and the path of least resistance is down. Get out. Raise cash. It will likely take many years, but at some point in the future the great unwinding will set the stage for a new great bull market where fortunes will be made.