Interview: Michael Sheimo On Dow Theory by Thom Hartle
Take a look around: Technology is changing the face of trading and investing before your very eyes. Computers, information acquisition and trading are all getting faster and faster, sometimes at breath-taking speeds. The world of tomorrow is here today, in the form of technology. Is there still room for the classic approaches, such as Dow theory? To find out, Stocks & Commodities Editor Thom Hartle spoke with Michael Sheimo, author of Cashing In On The Dow, Stock Market Rules, and Dow Theory Redux, by phone on March 24, 1998. Here's what this noted author had to say about using this classic technique today.
Q: How did you start out in the business?
A: I was a stockbroker, first with Merrill Lynch and then with Olde Financial Corp. When I worked for Olde, we would get a lot of questions, from individual investors and investors who were daily technical traders both, who would watch the market go up and down, and they would need to have certain points clarified about why the market acted the way it did.
Q: How did you get interested in the Dow theory?
A: Before I became a broker, I had studied Dow theory as an individual investor. And ultimately, after having had to answer all those questions from the investors, I decided to write a basic book about Dow theory and other stock market indicators. It was a book designed to show where the theory originated, how it has evolved, and why it continues to be relevant.