The Reckoning by Tim W. Wood, CPA
Dow theory, revisited. Yes, this concept from a century ago still applies to todays markets.
The Dow theory nonconfirmation that began forming in February 2015 has been a warning. The great Dow theorist Robert Rhea once said, A wise man leaves the market alone when the averages do not agree. Few really understand Dow theory, and it seems that most people who are familiar with it tend to discount it as some antiquated relic of the past. The current market environment and the developments since February 2015 are a perfect example. The Dow theory has been issuing warnings, but as is always the case, those warnings have not been understood or heard...