Working Money: Confirming Bear Markets by David Penn
In a down market,the only question as important as “How low will we go?” is “Will we know
when we’re there?”
While many technical analysts have relegated
Dow theory to that same attic in which the
old tickertape machines are stashed, the
underlying premise of this approach toward
the stock markets, now more than 75 years
old, remains both valid and potent. In fact, Dow theory can be
an effective intellectual haven from the “24/7, 365” barrage of information, financial and market news reports, and analysis.
Although it is true that intraday and day-to-day movements in
the stock market can provide clues to entry and exit
opportunities, it is equally true that a sound understanding of
larger intermediate and long-term trends is key to putting any
investment or trading decision in the proper context.