ARTICLE SYNOPSIS ...Is Dow Theory Sending Us A Warning? by Michael D. Sheimo Michael Sheimo, best known for books such as Dow Theory Redux and Stock Market Rules, tackles the age-old question of whether the Dow theory is still valid and if it is, is it really sending us a warning? After more than a hundred years, are the concepts of the Dow theory still useful in determining stock market strength? The Dow theory was arrived at by an evolutionary process over a period of several years. At the turn of the century, Charles Henry Dow discussed stock trading ideas in the newspaper he was both editor and publisher of...
ARTICLE SYNOPSIS ...Stock Splits: Boon Or Bust? by Michael D. Sheimo Even the most sophisticated market participants are tempted to buy a stock that has been announced to split two for one. They, of all investors, should know better, because not all stock splits turn out to be positive events. So how often are they positive for three to six months after? Michael Sheimo, best known for books such as Dow Theory Redux and Stock Market Rules, explores the question. Say that XYZ Corp. has just announced a two-for-one stock split to take effect in two months. Is it time to sell what you hold, buy more or do nothing? ...
ARTICLE SYNOPSIS ...Trading The Santa Claus Rally by Michael D. Sheimo 'Tis the season to be jolly and make a profit. What could be finer? Michael Sheimo explores the whys and wherefores of this seasonal phenomenon. Holiday rallies in the stock market are a fact of life. Various theories abound as to why they occur: institutional traders don't want any loose cash sitting around for a long weekend, trading houses want to maintain optimism for the holiday, investors are in a buying mood, a culmination of technical influences come together near holidays. The cause of a holiday rally can be as simple as institutio...