Quote of the Day: Dow Theory

“People don’t understand the significance of the ‘bear market signal’ of
November 21. I stated on Wednesday’s site (Nov. 21) that the breakdown of the
Industrials signaled THE EXISTENCE of a primary bear market. It didn’t signal
the beginning of a bear market, Wednesday’s action gave us the final word via
Dow Theory that a primary bear market was in force.

… A precept of Dow Theory is that neither the duration nor the extent of a
bull or a bear market can be predicted in advance. It is far easier to IDENTIFY
the end of a bull or bear market than it is to predict their end. Bull markets
tend to build extended and often deceptive tops while bear markets tend to build
more definite and identifiable and faster bottoms. Therefore, it’s usually
easier to identify the bottom of a bear market than it is to identify a bull
market top.

… I expect a lot of wild and confusing movements from the stock market in
the days ahead. But I remind subscribers that a rally here, even a powerful
rally, will not mean that the bull market has suddenly been reborn. This bear
market will not end in four months. But any rally here will allow subscribers to
‘trim their sails’."


-Richard Russell, Dow Theory Letters

Category: Investing, Markets, Technical Analysis

Crude Oil = $99

Category: Commodities, Energy, Technical Analysis

Black Friday’s Upside Surprise

Category: Consumer Spending, Markets, Psychology, Retail, Trading

Subpar Scorecard

Category: Credit, Derivatives, Earnings, Valuation

Read it here 1st: Profits Flip Negative for Q3

Category: Data Analysis, Earnings, Valuation

Thanksgiving Day Weekend Linkfest: Review/Preview

Category: Financial Press

2008 Housing: Increased Defaults, Decreased Prices

Category: Credit, Derivatives, Real Estate

Friday Night Jazz/Rock Guitar: Jeff Beck

Category: Digital Media, Friday Night Jazz, Music

Who Are Online Financial Readers ?

Earlier this week, we looked at some data about online financial news sources (via Media Post). For those of you find this sorta stuff interesting, there are more tables after the jump.

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Category: Data Analysis, Financial Press, Investing, Web/Tech

Black Friday

Category: Consumer Spending, Economy, Retail