- The Dow Jones Industrial Average is in its longest win streak since February 2017.
- The index has jumped 11 days in a row, delivering investors a gain of just over 5%.
- Carson Group's Ryan Detrick observed that win streaks from the Dow suggest there is no recession in sight.
The Dow Jones Industrial Average has experienced its longest win streak since 2017.
The 30-member index closed higher on Monday for the 11th day in a row, and the index is on track to close higher again on Tuesday, marking its first 12-day win streak since February 2017.
The Dow has gained a total of 5.2% since its string of gains started on July 10, with investors rewarding a slew of robust second-quarter earnings reports and continuing to bid up AI-related technology stocks like Microsoft and Salesforce.
According to Carson Group chief market strategist Ryan Detrick, the Dow's solid run tells investors two things: that more gains are likely and there is no recession in sight.
He crunched the numbers and found that the Dow Jones has seen an 11-day win streak only five other times since World War II, and the forward-looking returns were overwhelmingly positive.
Blue chips were higher three months later 100% of the time, delivering an average gain of 5%. They were also up six months later 100% of the time, delivering an average gain of 11%. And 12 months later, they were up 80% of the time, delivering an average gain of just over 8%.
The only instance where the Dow didn't print a higher gain one year later was in 1987, when it closed lower due to the Black Monday crash that saw the index sink 23% on October 19, 1987.
Aside from that, stocks have a solid chance of continuing their momentum higher, based on the analysis from Detrick, and that bodes well for the broader US economy.
"Bottom line, you don't see recessions or bear markets when this happens," he said in a Tuesday tweet.
Detrick also cited an increase in home prices and a jump in consumer confidence. "There is no recession coming," he tweeted in reference to the data.