Click Here to Subscribe Now! Sign Up Now For a Free Trial!

 Welcome to Dow Theory Letters

A Leader and Innovator in Technical Stock Market Analysis

 for over 50 Years!

 

Richard Russell and his team of talented analysts work daily to bring you the best of primary trend analysis, investor education and intelligent investing advice.

 

How We Are Different

  • We believe in “market timing.” Our goal is to get you out at the top and in at the bottom of major, long-term market moves.
  • Daily edition. Dow Theory Letters is published daily, an hour after the market closes, at 2 pm, Pacific Standard Time. 
  • Value. We provide the analysis of our entire team to you for one low price.

 

What You Get

  • Daily market analysis from one of our outstanding columnists
  • Daily commentary and musings from analyst emeritus Richard Russell
  • The Primary Trend Index (PTI) our proprietary trend indicator
  • Market data section with everything you need to get a full picture of how the market is evolving

 

 

Quote of the Day

“Life becomes easier when you learn to accept the apology you never got.”  R. Brault

Richard's Remarks

The newspaper headlines are so negative that it takes all my strength to read them. So what do they say about the trend of the market? Let's review a few technical items. New lows on Friday were triple the rate of new highs. The advance-decline line was rolling over. There are six distribution days on the NASDAQ and three distribution days on the S&P Composite. The pecentage of stocks trading above their 200-day moving averages was at 43, well below the 50% level. Investor's Business Daily's index of 25 growth mutual funds shows a declining trend in this index.

 

So all in all, the technical backround for the stock maket does not look good. Nevertheless, the D-J Averages appear constructive.

 

Click Title to Read More ...

Read  

Matt's Market Insights

Most major US indexes are flirting with their 50-day moving averages, raising questions about the short to medium trend. In the chart below we can see the Industrials testing their 50-day MA; so far support has held. It's interesting to note that it was the 200-day MA that provided a floor for the sell-off back in late July and early August.

 

Same story with the Transports, as they bounce off the 50-day MA in sync with the Industrials. We received the most recent Dow Theory bullish confirmation just over a week ago. Investors would do well to remember that in the face of continued geopolitical unrest and global growth worries.

 

Click Title to Continue Reading ...

Read  

Richard's Remarks

 With the Dow up triple digits one day and down triple digits the next, this is the perfect market to lose money in. This from the conservative Cato Institute:

 

On the one hand, the Fed endorses and requires the use of risk models; on the other hand, it undermines them by its own erratic monetary policies. The Fed asks us to believe that it alone, out of all the regulatory stress testers, will be the one to get it right – and this despite the Fed’s disastrous forecasting record.

 

If the movements of the Dow Industrial Average reflect investor sentiment, my interpretation is that investor sentiment is an incomprehensible mixture of extreme greed and extreme fear.

 

Click Title to Continue Reading ...

 

 

 

Read  

Matt's Market Insights

Few financial topics elicit as strong an emotional reaction as inflation. That's probably due to a number of factors including its "hidden tax" nature as well as the seemingly ambiguous process of calculating this illusive figure. If you don't properly factor inflation and inflation expectations into your investments and planning, you could miss the mark by a wide margin. But what inflation measurement should you use?

 

Do you go with the Consumer Price Index? Personal Consumption Expenditures? The figures reported by Shadowstats? The spread between similar maturity Treasuries and Treasury Inflation Protected Securities (TIPS)?

 

Click Title to Continue Reading ...

Read  

More Articles »