Dow Theory As It Was Meant To Be
Pedro V. Marcal  (Author, "Market Timing with Technical Analysis")  Email to the Editor of TheStreet.com  April 13, 1999

Aaron Task: In reference to your story Dow Theory: It's Alive! Alive! And Bullish?, I am glad that you found Jack Schannep, who interprets Dow theory the way it was intended.

Basically it's a cyclic behavior with the transports used to confirm the industrials at every cycle.  Not at its highest or lowest.  In September, a bull signal had been re-established, as Schannep explained.   Subsequent stock-market behavior has followed the signal. 

I should note that the Dow theory was the only signal indicating that the market would go up amidst all the pessimism of the other indicators, such as the A/D line and new highs/lows.

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