Dow theory

[PretzelPiece]

I wouldn't use transportation now. In those old days, tran was "old economy", and industrial was "new economy". So i prefer looking at industrial and nasdaq.

 

[indahook]

Quote from alex.samant:

The Dow Theory worked like this 100 years ago. Today, in the era of modern computerized analysis, the Dow Theory still works, only it is wearing different clothes (erm, studies that is).

Quote from PretzelPiece:

I wouldn't use transportation now. In those old days, tran was "old economy", and industrial was "new economy". So i prefer looking at industrial and nasdaq.

Thanks for the input guys.

Use whatever works for you, thats all that matters right?

Good trading to you both!

 

[indahook]

Bringing it back from the dead.

A post holiday gift for my buds here! You know who you are.

My technical analysis had me out of stocks since late 2007. And now my analysis has me piling back in.

As of Jan 2nd I am 100% invested in equities(SPY). My way of viewing the DOW theory and one other indicator that I have developed are pointing skyward in a big way. Sorry but I cant share the indicator with you. I will say it has signalled all stock mkt bottoms within 10%. Since i`m swinging long term thats barely heat for me.

Also for anybody that cares. This will most likely be my last post for at least one year. I`ll be working with a start up fund real soon run by one of the best traders I have ever seen in 12 years in the biz. A dream come true for me.

I`ll check in for PM`s.


Good trading to you all.

 

[murray t turtle]

Quote from alex.samant:

The Dow Theory worked like this 100 years ago. Today, in the era of modern computerized analysis, the Dow Theory still works, only it is wearing different clothes (erm, studies that is).

==================
Prefer a DOW Theory variation of MR William O Neil version[IBD founder[Nasdaqqq & S&P 500];
my preference is SPY,QQQQ. True he likes better volume than lately........

Also DOW theory says it takes several months for a major trend change[thats bear tend now];
so even 1 month close above 200 DMA,SPY, QQQQ would not be a mechanical buy DOW theory buy,

But the second month close above 200 ma or ema could be signal .


And while i do not use 50dma/50ema mechanicaly;
seldom ignore it,either.William O Neill & his institutional clients like it also..........................................................

Especially with Fed doing a ''game changer'';
as Eric Bolling/FOX noted. Not a prediction

 

[Tums]

A good quick start of the Dow Theory is here:
http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:dow_theory

 

[indahook]

Went to cash October 2007. INDU 13,522 `ish

100% long from January 2009..INDU 8,599`ish and still holding.

No reason to sell yet.

But I have started writing calls against my longs begining with May expiration.
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I`m seeing all these old thread bumps so I felt like joining in.

Good trading to you.

 

[failed_trad3r]

when is it time to sell?

 

[indahook]

Quote from failed_trad3r:

when is it time to sell?

I have no idea. But i`m 100% positive the market will tip its hand when its ready. I wont get the top. But thats not my game.

Regarding investments there is beauty in simplicity.