Search Results for: Richard Russell

Dow, Hayek, and Graham: Price as Knowledge

Price conveys knowledge, that is the conclusion of Russ Roberts in an EconTalk podcast with Don Boudreaux dated October 28, 2013. More specifically, Roberts was citing the work of F.A. Hayek’s “The Use of Knowledge in Society” dated 1945 and … Continue reading

Inventory-Sales Ratio

Richard Russell’s Dow Theory Letters dated March 20, 1970: “Sales and Inventories: The accompany chart from the Journal of Commerce (thanks to Humphrey Neill) shows an interesting picture, the critical sales to inventory ratio. When business is expanding, and we … Continue reading

The Dow and Recessions

The following is raw data on the performance of the Dow Jones Industrial Average (DJIA) versus the National Bureau of Economic Research (NBER) call of a recession from the peak to trough from 1900 to 2018. Our aim is the … Continue reading

Dow Theory Letters Book List

Richard Russell was a legendary Dow Theorist and stock market commentator. Russell wrote the Dow Theory Letters for over 55 years from 1958 to 2015. Using Dow theory, Russell accurately called the top of the market in 1966, the bottom … Continue reading

Tesla: Downside Targets

In this posting, we’ll covered the topic of downside targets for Tesla (TSLA).  We’re going to apply Speed Resistance Lines [SRL] and George Lindsay’s “Three Peaks and a Domed House.”  The SRL downside targets are fairly conservative, in our view, … Continue reading

Wanted: Real Gold Experts

Experts on the topic of gold are a dime a dozen.  However, few, if any, are actually experts at all.  With the ability to be quoted day in and day out, there is little or no accountability when it comes … Continue reading

The Definitive Dow Theory on Gold

Dow Theory attempts to define and identify major moves in markets referenced here as the “primary trend.”  In this piece, we will outline the price of gold according to Dow Theory. We’re going to review and analyze the primary trend … Continue reading

Elliot Wave Theory: Insights

On September 16, 1970, Richard Russell had the following to say about Elliot Wave Theory: “Last week I received a letter from a gentleman at a large New York Bank, and the letter raises on important question which deserves answering … Continue reading

Federal Reserve: A Bit Player

When talking to any number of clear headed and knowledgeable market analysts, it often shocks me at the confidence and certainty with which the Federal Reserve Bank is credited with the rebound of financials markets from 2009 to 2016.  It … Continue reading

Dow Theory: The Misunderstood Barometer

Dow Theory is a fickle beast.  While the theory is sound, those that interpret it have their challenges.  A recent article dated May 21, 2015 titled “Transportation Average – A Big Concern for Stock Bulls?” by Chris Ciovacco presents some … Continue reading

Consequences of Falling Oil Prices

Economic events never occur in a vacuum.  Usually there is a string of events that leads from one event to another. One big event can lead to an even bigger event that overshadows the prior calamities that triggered “The Big” … Continue reading

E. George Schaefer and Gold Stocks

E. George Schaefer is most synonymous with Dow Theory and its modern application.  However, E. George Schaefer was also known for his work in the selection and timing of gold and silver stocks.  As a bit of background on E. … Continue reading

Gold Stocks: Risks and Remedies

The topic of gold inspires a charged reaction from individuals seeking fiscal and monetary responsibility of their respective governments.  This article is an attempt to establish the risks of gold stock ownership in an investor’s portfolio.  We will cover the … Continue reading

Review: Bank of Montreal

Contributor C. Cheng Asks: “What are your concerns regarding the housing bubble forming in Canada and it’s potentially adverse effects on BMO?” Our Response: The timeliness of this comment regarding Bank of Montreal (BMO) is critical.  On June 7, 2012 … Continue reading

Dow Theory: The 50% Principle

The following from Richard Russell’s Dow Theory Letters is what we believe to be one of the most valuable examples of Charles Dow’s 50% Principle in action.    “I am publishing this arithmetic chart of the D-J Industrials (high and low … Continue reading