The reason there is room for disagreement about Russell's interpretation is that Hamilton was not precise about how serious a correction is needed to satisfy Step No. 1. Not every correction will do, of course, since some corrections last only a couple of hours, while others last weeks or months.
Some other Dow Theorists believe that the late January/early February correction was neither long enough nor deep enough to qualify. For the DJIA, that correction lasted only 7 days and shed just 2.2 percent from the average's value. For the DJTA the correction was only marginally longer (9 days) and deeper (8.4 percent).
And if that correction doesn't qualify, then no sell signal was generated on Wednesday -- leaving intact the last signal that was generated by the Dow Theory.
Both of the other Dow Theorists the HFD tracks -- Richard Moroney of Dow Theory Forecasts, and Jack Schannep of TheDowTheory.com -- believe that this last signal was a buy signal. They therefore remain bullish.
So there you have it -- one Dow Theorist bearish, two bullish.
All this short selling is the John Kerry wing selling us on the failure of the Bush economy..............what a joke to suggest that the public does not see through all the garbage. The real pigs are the ones doing the shorting in lipstick and tight pants.....look to the left, they are herded up just beneath those palm trees.
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