'This book is the definitive guide to modern-day Dow Theory from probably its most consistently successful practitioner.' (Investors Chronicle, June 2010).
From the Inside Flap
The first stock index published by Charles Dow in 1884 was comprised of eleven stocks, nine of which were railroads. It was not until 1896 that the Dow Jones Industrial Average was born, with twelve "smokestack" companies. Dow saw the stock market and his ideas about how it movedyet to be named by others as Dow's Theoryas an indicator of business activity. Today, over 100 years later, his theory is still relied upon by investors. In Dow Theory for the 21st Century, Jack Schannep expands upon this theory and brings it into the new millennium, providing the information that today's serious investor needs to achieve stock market success.
Schannep discusses the classic patterns of Dow Theory Buy and Sell signals and explains why they will be just as profitable in the future as they have been in the pastdetailing bull-market buy and bear-market sell signals. He provides "a complete and detailed record" of the Dow Theory that shows how, with some few exceptions, Dow Theory Buy signals have preceded, confirmed, or reconfirmed all business expansions and bull markets during the twentieth century. Perhaps most importantly, Schannep explains capitulationone of the most frightening times in the stock market's cycle, and at the same time, one of the most profitableoutlining its eight best indicators and their record of success. Along the way, the author also offers readers a valuable tool for identifying changes in the trend of price movements on the major stock averages: the Schannep Timing Indicator. Developed while the author was at Dean Witter (now Morgan Stanley), it became the major trend indicator used by the firm. And like the Dow Theory, it has a proven record of excellence.
Providing readers with a firm understanding of the original Dow Theory, a logical definition of bull and bear markets, and the ability to use capitulation to their advantage, this book ultimately formulates a Dow Theory for the twenty-first century that will help anyone invest more successfully as we move forward through Wall Street's next hundred years.