Public ChartLists

Dow Theory has been around since the 19th Century. Charles Dow was the first editor of the Wall Street Journal and delivered his seminal message in a series of editorials. Later organized by Hamilton, Rhea and Russell, the theory has stood the test of time. Bringing the theory into the modern age, we have codified it here for your simplified use. If you can count to 5 you can follow AlphaDow.

In Chart #1 (AlphaDow), add up the numbers in the boxes. A BULLISH state first occurs when the count reaches 5 out of 5. A BEARISH state occurs when any 3 of the 5 turn negative. You can use this as a %27regime filter%27 to signal when the odds are in your favor of going long stocks or as a system to go long SPY vs. a move to cash/bonds (SHY/AGG).

We also offer paint by numbers systems for bonds and gold. A diversified portfolio is offered below our commentary. As always, consult your own advisor and due your own due diligence. Feel free to send questions using the feedback button.

The Call For The Week of May 18th:

A large dose of hope caused a big rally in U.S. equities and it was healthy in all respects. Breadth was strong (8:1 advancers to decliners and 9:1 up volume to down volume). Oil broke above a key level while GOLD held steady. Conservative investors should continue to focus on preservation of capital.

Summary: Our "Sleep Well At Night" (SWAN) Portfolio uses a carefully measured suite of systems for stocks, bonds and gold.

Chart #1. 0% long SPY (30% SHY or cash) [or if you are Canadian use Chart #2. 0% HXT.TO].
Chart #3. 0% long TLT (20% SHY -- AlphaBond)
Chart #4. 0% long GLD (20% in SHY or cash --AlphaGold).
Chart #5. 0% long SPY (30% SHY or cash -- New Dow Theory (FWB) )

Each position is managed by a unique system, namely 1. and 2. AlphaDow, 3. AlphaBond, 4. AlphaGold, 5. FWB - New Dow Theory respectively.