When I started Dow Theory Letters in 1958, I worked with three items: the Dow Jones Industrials, the Dow Jones Transports and daily volume on the NYSE. In those days, volume was running two to three million shares a day. There was no NASDAQ and foreign exchanges were largely unknown. Today the picture is entirely different. We have the currencies, precious metals, commodities, derivative, and foreign exchanges. The more items we have to deal with, the greater the chances of making mistakes.
The one common denominator is the great primary trend of the markets. The primary bull trend began in 2009 and continues until today. The first and second phases of the bull market may be over. I’ve never seen a major bull market that did not end with a speculative third phase; this is the phenomenon that I expect to see ahead.
One might ask, "How can we have a speculative ... Log in or subscribe to continue reading.