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Richard Russell: The Verdict Is In – It’s a Bear
Source: Richard Russell, Dow Theory Letters
The verdict, at long last, is in. Today the D-J Industrial Average closed below its November 20 bear market low. In so doing, the Dow confirmed the prior breakdown of the Transportation Average. The two Averages jointly closed at new lows today, thereby signaling that the great bear market remains in force.
According to Dow Theory, neither the duration nor the extent of a bear market can be predicted in advance. However there are some useful hints. Most major bear markets end with stocks at "great values" or as some Dow Theorists put it, "below known values."…
23Feb2009 | The Gold Report | 0 comments | ContinuedDow Transports Say: The Bull Market Lives!
Matt McAbby
Quantitative Analyst, Oxbury Research
Dow Theory, developed originally by Charles Dow, the founder and editor of The Wall Street Journal, is one of the oldest and most reliable methods of market analysis available to investors. Without getting into all the particulars, one of the key tenets of Dow Theory is that both the Dow Transport Average and the Dow Industrial Average must confirm one another when bull and bear markets begin. Below we examine exactly how this works.
But first, let’s take a brief look at the relationship that binds the Transports to the Industrials.
There are two aspects to traditional industrial…
3Sep2008 | Oxbury Research | Comments Off | Continued
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