Category: Investment musings

Plain vanilla Dow Theory? Or does Dow Theory come in many flavors?

posted on: September 15, 2012

Part I. From Charles Dow to Richard Russell Before this blog continues growing, I feel a clarification is in order. I constantly allude to the Dow Theory as if it were a given. However, in the last 110 years substantially different investment and even trading styles have been advocated under the label “Dow Theory”. Is […]

The price of not heeding the Dow Theory: 6.05% from 06/29/2012 to date

posted on: September 8, 2012

I frequently visit “The Big Picture” to be updated on financial matters. It is a wonderful website. Yesterday I found this post entitled “Sell Side Indicator” which you can find here The gist of the post is a chart that shows the extreme bearishness of asset managers and analysts. In other words, since the Dow […]

Fundamental versus Technical analysis and Dow Theory. Who is right?

posted on: August 31, 2012

The sad truth is that whatever method you apply it is very difficult to make money in the markets. As the saying goes: It is easier to talk (or write) about money than making it. Thus, it is difficult to discern (a) the encrypted messages of technical analysis, and (b) the validity of the “fundamental” […]

The Dow Theory gives us order. It provides us with a framework to analyze the market.

posted on: August 30, 2012

We fail at making money in the markets not because of a lack of tools but because we (1) lack consistency in using our tools, (2) have an undefined time-frame and (3) lack of well defined exits (stops) Dow Theory addresses these three issues: It allows us to be consistent. Of course, to be consistent […]