Search Results for: Charles Dow

Charles Dow Reviews

Charles H. Dow was a co-founder of the Wall Street Journal. 4-year Cycle Update Dow Theory Applied to Silver? Dow Theory: Values and Prices The General Nature of Bear Market Declines Law of Action and Reaction Dow Theory Misunderstood Price … Continue reading

On This Day: Charles H. Dow

On this day, Charles H. Dow of the Wall Street Journal, said the following: “The true currency of commerce is credit. A part of this credit is represented by cash, but the larger part is represented by book entries on … Continue reading

On This Date: Charles H. Dow

On this date in 1900, Charles H. Dow, in the Wall Street Journal, said the following: “The iron trade, while improving from one point of view, is in a position where the surface is unfavorable. When it is decided to … Continue reading

Charles H. Dow, Father of Value Investing

The concept of Dow Theory is widely associated with technical analysis.  While there’s no denying of such a view, investors shouldn’t overlook the fact that Charles H. Dow emphasized the concept of value investing in much of his writings.  In his … Continue reading

Index Downside Targets

Below are the downside targets of the respective indexes based on the work of Charles H. Dow and/or Edson Gould: Nifty Fifty S&P 500 (subscription required) Dow Jones Industrial Average (subscription required) Nasdaq Composite (subscription required)

Dow’s Downside Targets for the Nifty 50

Below are the downside targets based on the work of Charles H. Dow.

Market Rewind: S&P 3,384/Dow 3,384

On September 14, 2020, the S&P 500 Index closed at 3,383.54.  To celebrate, we are going to review what Richard Russell’s Dow Theory Letters had to say about the market when the Dow Jones Industrial Average closed at 3,384.32 on … Continue reading

Dow’s Theory on Government and Markets

“Remember that the industrial and railroad stocks used in the averages are essentially speculative. Only to a limited extent are they held for fixed income by people to whom safety of the principal should be the main consideration, and their … Continue reading

Dow Theory: October 4, 2019

In the chart below, we see two different stocks showing strongly bullish reversal patterns in the period from July 2017 to October 2019. The line in red saw a bottom in September  2018 while the line in blue saw a … Continue reading

Dow’s Railroad Index 1872-1899

The railroad index consisted of leading rail stocks that exhibited the high average trading volume.  Industrial stocks* as defined by Charles H. Dow as: “…stocks of trust companies and banks are simply industrial stocks… (Dow, Charles H.Wall Street Journal. Review … Continue reading

Dow’s Theory on Employment and Unemployment

In the Review and Outlook section of the Wall Street Journal dated February 27, 1902, Charles H. Dow said the following of labor and unemployment and their impact on prices: “Periods of depression in business and in prices are invariably … Continue reading

Dow’s Theory on Consumer Sentiment

Consumer Sentiment and its Predictive Role Consumer sentiment seems to be an arbitrary measure for deciding if the economy will grow or contract.  However, having a reliable measure of consumer sentiment can aid in future planning for spending and investment.  … Continue reading

Dow, Hayek, and Graham: Price as Knowledge

Price conveys knowledge, that is the conclusion of Russ Roberts in an EconTalk podcast with Don Boudreaux dated October 28, 2013. More specifically, Roberts was citing the work of F.A. Hayek’s “The Use of Knowledge in Society” dated 1945 and … Continue reading

Dow’s Theory on True Value

Charles H. Dow’s version of “Only when the tide goes out do you discover who’s been swimming naked.” “…while good and bad stocks rise and fall together with general conditions, and each stock has its own independent movement, and, as … Continue reading

Dow’s Theory on the Economy

Charles H. Dow says that to understand the stock market study business conditions “We believe that the stock market as a whole should be regarded always as an effect of general conditions, and that the way to study the stock … Continue reading