Below are highlights from the NDW Morning Update Video for the morning of 08/20. Access the the video on the NDW Morning Update Video page. 

• The market posted broad-based gains over the past day, highlighted by a 2.96% rise in the Gold continuous contract (GC/), alongside advances of 1.18% in Emerging Markets (EEM) and 1.02% in the S&P 500 Equal Weight Index (SPXEWI).

• The S&P 500 Ten Week Indicator (^TWSPX) reversed back into a column of Os earlier this week as the percentage of stocks trading above their 10-week moving averages declined amid the recent bout of market weakness.

  • S&P 500 Bullish Percent Index, an intermediate-term breadth indicator that measures the percentage of stocks on Point & Figure buy signals, remains in a column of Xs. However, the indicator is approaching a reversal into a column of Os, meaning that continued market weakness could signal a deterioration in underlying breadth.

• International equities fell five points in the latest DALI Asset Class Rankings over the past few days, slipping to second place. As a result, domestic equities have reclaimed the top spot for the first time since February 2026. Prior to this shift, international equities had maintained the number one ranking since mid-March 2026.

• In light of the latest DALI ranking changes, we highlight yesterday's analysis comparing a portfolio invested in the top one or two ranked asset classes against a portfolio holding all six asset classes. Since 1999, a concentrated allocation to the highest-ranked asset classes has delivered meaningfully stronger performance than a fully diversified six-asset-class approach.

• The Health Care sector fund (XLV) rose 4.30% over the past week, continuing its recent improvement. The fund completed a bullish catapult pattern, producing its third consecutive buy signal and reaching a new all-time high. Given the broader market pullback earlier this week, the sector's defensive nature could position it as a relative beneficiary in the current environment.

Nasdaq Dorsey Wright is heartbroken by the passing of Tom Dorsey, co-founder of Dorsey, Wright & Associates. There are people who build successful businesses, and there are people who change lives. Tom Dorsey did both.

For those who knew him, Tommy's greatest gift was his ability to make people believe they could accomplish more than they thought possible. He believed that through hard work, discipline, and dedication, anyone could become world class. More importantly, he had a unique ability to instill that confidence in others. Whether it was an employee, a colleague, or a financial advisor, Tommy made people think bigger, work harder, and believe in themselves.

His mission was never simply about investments, markets, or building a firm. Tommy understood that behind every portfolio was a family, a better future or a dream yet to be realized. He was passionate about empowering financial advisors because he knew the impact they could have on their clients' lives. To Tommy, helping an advisor succeed meant helping a family send a child to college, retire with confidence, take the trip of a lifetime, or achieve dreams that once seemed out of reach. The work mattered because people mattered.

Tommy was a teacher at heart. He loved sharing knowledge, challenging conventional thinking, and helping others grow. Whether discussing markets, business, life lessons, or emerging trends, he approached every conversation as an opportunity to learn and teach. His curiosity never faded. He especially enjoyed spending time with younger generations, listening to their ideas, understanding what excited them, and gaining new perspectives on where the world was headed.

Outside of work, Tommy embraced life's simple pleasures. He loved shooting pool and spending time at his son's pool hall, where he also introduced the value of investing to a new crowd. Most of all, he loved being around people. No matter where he was, Tommy had a way of turning a conversation into a lesson, a friendship, or a source of inspiration.

The legacy Tommy leaves behind extends far beyond the investment industry. It lives on in the advisors he guided through good and bad times, the colleagues he mentored, the countless individuals whose confidence he strengthened, and the families who benefited from the work he inspired. 

At Dorsey Wright, we are fortunate to stand on the foundation Tommy built. His ideas, his teachings, and his belief in people will continue to guide us for generations to come.

Thank you, Tommy, for teaching us to think bigger, work harder, keep learning, and never stop believing in what is possible.

We extend our deepest sympathies to Tommy’s family and friends.  Your legacy lives on in all of us.

The below is an article written by Tom Dorsey that was last updated in 2005.

It seems that most of my life I have been involved in athletics and the stock market. In fact, long ago I decided that after my devotion to my family, I would focus on only two things in this life, save my annual motorcycle trips with my wife and ancillary things like write books, etc. Those two things are the stock market and powerlifting, and now I must add golf. My wife decided to take lessons and dragged me along. Now I’m addicted. I’m a late starter but better late than never. At first I was an athlete focusing on track and field (yes I use to be a bag of bones that could run like the wind) and later in life I gravitated to power lifting. My other passion, the stock market, began in my senior year in college with a belief that I was tired of being poor and wanted to make money. I figured it was best to go where money was, Wall Street. I've had a lot of magnificent experiences over the years. It's been a real growing experience for me. I'd like to share with you just a few of the things I've learned.

I've learned that what you believe you can do, you will do. Nothing bothers me more than a defeatist attitude with anything.  

I've learned that some of the greatest feats ever accomplished in sports were by people who simply didn't realize those feats were impossible. Buster Douglas comes to mind the night he knocked out Mike Tyson.

I've learned that the old saying by Ben Franklin that success is 95% perspiration and 5% inspiration is dead right. Hard work wins every time. Add positive thinking to hard work, and you're a winner. Say “I can’t” and you won’t.

I've learned that in sports you are never too old to compete. Too many people give up thinking that middle age is too old to experience the adrenaline rush of competition. It couldn't be further from the truth. Even if you come in last, competing at something is intoxicating. It makes you feel alive.

I've learned that if you believe in yourself, miracles can happen. I mean real miracles. There is truly magic in believing. Remember the day you went home finally understanding our method, it clicked, and your confidence level jumped up a mile? It was magic for me.  

I've learned that one should never be satisfied with your position in life. That would mark the top just like in a stock. Negative inertia begins to seep in, and before you know it you are backsliding. It's the kiss of death for a broker to become satisfied with the size of his account base. It will surely mark his top.

I've learned that the past is important only because it got us where we are today. I can think of some of my past that many might have thought would have held me back in life, like ADD and dyslexia, but it didn't. It only made me stronger and helped get me where I am today.

I've learned that ice cream tastes better than frozen yogurt but frozen yogurt is better for me. Also, yogurt tastes better than low fat ice cream and low fat ice cream tastes better than bran although bran is better for me and bran doesn't taste better than anything.

I've learned that the Adkins diet is right down my line. I can have a barbeque every day of my life and eat steak for breakfast, lunch and dinner. I've also learned that things I like to eat are probably the worst things I can eat so the Adkins diet is ultimately bad for me. Things in life often are counterintuitive.

I've learned that you can tell more about a broker by how he handles defeat than how he handles success. It's those who can make mistakes, learn from them, and come back stronger who eventually turn out to be the best brokers. Those who make mistakes and then settle for status quo because it’s easier will become marginalized in the end.

I've learned that production levels have nothing to do with how good a stockbroker is at making money for his clients. I've seen high producers who should be drummed out of the business and low producers who should get awards for excellence.

I've learned that almost any broker can perform well when the market is going up and all stocks are rising, but great brokers perform well when things are going bad. Too often we confuse “brains with a bull market”.

I’ve learned that strategic asset allocation pies only smooth out the road like Charles Schwab says. “For every action there is an equal and opposite reaction.” For every smooth read in investing there is no return.

I've learned that there is no limit to human athletic or professional potential. We have unlimited potential. The way to reach that potential is inch by inch. My dad taught me that “Life’s a cinch by the inch. Life is hard by the yard”. This little saying got me through the University, writing books and having the courage to start Dorsey, Wright & Assoc. with my partner Watson. It still gets me through each day. Thanks Dad.

I've learned that stockbrokers are not models of perfection. They're human like everyone else. That's the good news.

I've learned that stockbrokers who talk a good game, don't necessarily play a good game. That’s the bad news.

I've learned that getting in shape physically can significantly increase your production levels. The body serves the mind; a stronger body helps to have a stronger mind. Maybe it's simply that being in shape helps deal with stress, which helps keep a cool mind, which helps in your decision making process. In January, join a gym, and start putting it all together.

I've learned that it's not in man's best interest to be totally dissatisfied, but to always be unsatisfied. Judd Biasiotto taught me this.

I've learned that a stockbroker who is fearless is a fool and that real courage in this business can only be developed by facing your fears. Anyone who tells you there is no fear associated with investing others money doesn't understand this business.

I've learned that whatever tastes good is bad, and whatever tastes bad is good. I have begun cooking my morning oatmeal in coffee. It adds a new dimension to this tasteless product.

I've learned that true happiness can only be experienced when we push our hearts and souls to their fullest capacity.

I've learned through the "school of hard knocks" that we can achieve anything if we are willing to struggle a little, sacrifice a little, and work a little. Nothing worthwhile comes easy.

I've found that you can only find compassion and understanding from the strong. The weak usually have something to prove. You will have noticed that the big producers in this business have nothing to prove. When you ask them how they do it they respond: “I don’t know I just do it.”

I've learned that the most important thing in life is the love and respect of your family and that just being a good person will take you a long way.

I’ve learned that my wife Cindy is the rock that keeps me grounded in everything I do. Without her, none of this would have been possible. She was behind me 100% when we had no money, two young boys and she was pregnant with our daughter Samantha. All Watson and I had was $90,000 borrowed and a dream of being free. We’re still standing 20 years later.

I’ve learned that the success of a company is tied to the employees who work there. The least important people are the figure heads. DWA has been blessed with the best people who could have become a part of this organization. They make it all happen.  

I've learned that there is a linear relationship between success and hard work. Generally the harder you work, the more successful you become. I have seen brokers sitting at their desk waiting for their phone to ring while a broker three desks away is making 50 outgoing calls a day and setting up seminars. Who do you suspect will be successful?

I've learned that if you try to please everyone you will eventually become no one. Our politicians are like this.

I've learned that in order to do great things in life you have to take chances. Only when you are willing to experiment with your life can you ever discover how great you can really be. There is an old saying on Wall Street: No speculation, no accumulation.” This goes with life too.

I've learned that no matter how bad you are your mother will always love you. There is no love like a mother's love. I have lost both of my parents, and I think of them every day of my life. I’m glad they were alive to see DWA created. Don’t wait until they are gone to think of the things you wanted to say when they were here.

I've learned it's never too late to do something. I started Dorsey Wright with Watson when I was 40. I didn't start power lifting until I was 44 years old and broke a World Record at 53. I didn't become a licensed Hot Air Balloon Pilot until I was 45. I wrote my first book at 47 and took up golf at 57. George Foreman won the heavyweight championship of the world when he was 47. Jack Nicklaus won the Masters at 46. Fred Hatfield squatted 1000lbs at the age of 44. Nolan Ryan pitched his seventh no-hitter when he was 45. Galileo wrote his last book when he was 74. Grandma Moses didn't even do her first painting until she was 71. Don't let age defeat you. You're never too old for anything, because age is in your head, nowhere else. I'm 58 in one month and stronger than I have ever been in my life. I would never have believed it was possible, but it is. I've learned that winning is important but not as important as participating. Just participating sets you apart from the rest. The feel of adrenaline flowing again is a wonderful feeling. You get this by competing. You might be surprised that you are world class at something. You just have to try.

I've learned that everyone can be beaten even Tiger Woods and those who have been beaten down can rise again like John Daly.

I've learned not to pay for another Mike Tyson fight.

I've learned that anything worth having is worth waiting for. This is a matter of postponing gratification. This has been a hard lesson for me to learn. It’s still hard. I want things to happen yesterday.

I've learned that there is a lot more to learn.

The option suggestions featured here are pulled from the NDW Options Ideas tool. These are just a sample of the ideas that can be found there. The Options Idea tool contains numerous additional income and speculative plays. It also offers relative strength-based screens targeting the highest (and lowest) relative strength stocks and ETFs that have recently moved counter to their longer-term trend. To access or subscribe to the Options Ideas tool, click here.

Put

Riot Platforms Inc. (RIOT) Nov 20 $21 Put 

Income (Short Put)

Hilton Worldwide Holdings Inc (HLT) Oct 2 $310 Short Put