Customer Reviews

Dow Theory for the 21st Century: Technical Indicators for Improving Your Investment Results

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By way of complete disclosure I must say that I use Jack Schannep's work in my own work. Some years ago when I was looking to update the Dow Theory performance record I went to a famous Dow Theory analyst looking for DT signals for the second half of the century. He didn't have a record. I was completely astounded. Then I found Jack Schannep and not only found a Dow Theorist of uncommon excellence (and the Dow Theory performance record) but also an old fox market analyst. His book is full of valuable observations and conclusions from a lifetime of sailing the market seas. Readers are advised that his book is valuable whether they have any interest in Dow Theory or not. More importantly, books on technical analysis are divided into two groups, those which display hard won wisdom and those which demonstrate technical virtuosity. Both of these characteristics shine in Schannep's book.
W.H.C. Bassetti
Malcom S.M. Watts III Adjunct Professor
Finance and Economics
Golden Gate University San Francisco
Editor & Coauthor of Edwards & Magee's
Technical Analysis of Stock Trends, 9th Ed.

This book is written by an old broker who saw the cycles that elapsed during his many years of practice - only he early on recorded the parameters significant to the ebb and flow of these cycles. The author's years of experience are evident. In his lifetime alone, many cycles have occurred. He opens up our eyes to the fact that the market can be timed using various parameters.

He explains how the market cycles are as natural as the tide and how there is no need to sit in stocks during low tide. In so doing the book lays the foundation for the timing so critical for trend following. The period of these waves and thus the trading frequency correspond to the bull and bear market cycles. So trading, therefore, is not like following daily or weekly chart cycles with the chance of being whipsawed to the wrong side of it.

Though he talks about being in cash during the down cycle, it would be profitable to short the cycle using ETF's like SDS, DXD, and QID. Good riddance to staying in it for the long term, and especially for many of us with no long-term future this approach makes more sense.

Though individuals may have access to the latest value of some of these timing parameters he points out and Googling them could help fill in their value, it may be easier to subscribe to a timing Indicator newsletter like Jack Schannep's to eliminate such work. With the analytical skills evident in the presentation, I can see why his newsletter always ranks in the top 5. Any broker applying this theory would serve their client well

Some sentences in the book are long but they all make sense and a flow, set by the fast-reading pace, develops by Chapter 2. I have read over 50 investment books and this one goes on the top shelf along with Sam Weinstein's and Trending Following. Dow Theory for the 21st Century will be an `instant classic'. You will want to keep it, if only to mark the time at which your investment strategy improved 100%. As Gabriel Wilson said July 23, 2008 on the Business Talk Radio Network Jack's book is a terrific contribution to the body of knowledge.

Jack Schannep's Dow Theory for the 21st Century was recommended to me by a seasoned, serious investor who has for a long time followed the research and advice of the author. My initial reluctance to purchase the book was based on the fact I am not a seasoned investor and assumed I would not be able to fully grasp the information. Schannep has produced a book for serious, long term investing that is surprisingly accessible even to those fairly new to investing, and perhaps unfamiliar with Dow Theory. The research is extensive, to the point and backed up with documentation and history. This is not a book for those wishing to day trade their way to wealth overnight; it is however a valuable resource for those looking to maximize long term returns.

Jack Schannep has nailed it! He has wisely used his many years of experience to educate investors on market principles so that we don't have to watch TV every day or listen to the radio on the weekend for the latest and hottest. This is truly a gem that every investor should have in their office library!

Most technical analytical methods come and go, while Dow Theory still can't be neglected. The author has augmented Dow Theory by adding new era indicators that Charles Dow would like to use if they were available. The meticulous study in the book is valuable for those serious investors that want to master market timing.

I have been in the investment management business for over 20 years and work for a major global wealth management firm. In my opinion, The Dow Theory for the 21st Century is the single best investment book I have ever read. It contains practical data and studies that when applied may significantly improve your investment results.

The author, Jack Schannep's lifetime of experience and passion for the equity markets is evident and his insights may prove helpful in protecting your capital market assets during economic downturns and may help increase returns during bull market cycles (see pages 173-175).

If you are not sure about a "buy and hold" approach, I highly recommend the purchase of not only Mr. Schannep's book but also his monthly newslettter and automatic email buy / sell alerts.

We all know that there in no perfect crystal ball with regard to the direction of the stock market, but if the tenants of this book help you improve results (as they have mine), how much would it be worth?

Jack Schannep has distilled years of experience and a balanced perspective in this necessary update of the Dow Theory. I really appreciate his historical perspective. He certainly shows that the Dow Theory has relevance for today's investor. After all, the two major indexes for that theory, the Dow Jones Industrials and the Transportation Index really reflect what's going on in our economy.

I've been a devoted reader of his newsletter for about 5 years. Probably the most useful understanding he brings to the table is a seriously accurate understanding of capitulation. He explains it well in the book. It's the moment when everyone throws in the towel and the bottom is reached. He nails that date 5 out of 6 times that it happens. And the careful reader of both this book and his newsletter is benefitted if he acts immediately.

This is an enjoyable read if you are interested in understanding technical market analysis. If not, it can be a bit more than you need to know. Fortunately, he's organized the book so that you can really use it as a guide. I advise the reader to get to know the first two chapters and then use the rest as needed.

As a historian I especially appreciate Jack's long term perspective. It's so easy to get caught up in the moment in the market that it's wonderful to get a balanced and solid long term view.

I recommend this book as part of your arsenal of investing. It's best in providing a balanced perspective within which you can deal with individual stocks and indexes.

I have been a fan of Mr. Schannep's newsletter for a few years now, and his writings reflect a deep thinker with a lot of experience. I appreciate having an entire book dedicated to the application of a well-established theory to what is going on in the markets today. I need this book NOW more than ever.

For most of us investing in the stock market triggers emotions that often feel like facts, especially at 2:00 AM. Schannep has refined the old Dow Theory so that any investor can use his buy and sell triggers to separate emotional and sound investment decisions. On a day like today with the DOW falling over 600 points I dove into a review of this book to steady my nerves. It is nice to have this structure for my investing. Buy it, read it, and re-read it; you'll be richer for the effort.

Cover looks good, Review by Basetti looks good, Title sounds interesting.
Read the whole book and its nothing more than the author and his constant boasting.
Really dissapointed.