Saturday, January 13, 2024

Dow Theory Update for January 13: Use and misuse of the Dow Theory

 Not everything touted as Dow Theory is the real thing.

No technical analysis system is more abused than the Dow Theory. Some individuals peddle their eccentric notions under its banner to profit from its respectable track record, misrepresenting them as Dow Theory to make a catchy headline. A recent case involves the confusion between the "Dogs of the Dow" and the "Dogs of the Dow Theory." It's important to note that the former is a dividend-focused stock-picking strategy within the Dow 30, unrelated to the principles of trend following or Dow Theory. The "Dogs of the Dow Theory" does not exist. The screenshot below is from Google Alerts:

 

The Dow Theory has nothing to do with “dogs” or “cats.”

Sincerely,

Manuel Blay

Editor of thedowtheory.com

 

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