ABSTRACT
An investment of $100 in 1897 would have become $11,228.43 in 1956 simply by buying the Industrial Average stocks each time the Charles H. Dow Theory announced a Bull Market and holding them until the Dow Theory announced a Bear Market. The Dow Theory depends on interpretation and is subject to all the hazards of human interpretive ability. It is perfectly true that the Dow Theory does not help the Intermediate Trend investor, as it gives little or no warning of changes in Intermediate Trend. Some traders have worked out supplementary rules on the basis of Dow principles that they apply to Intermediate Movements, but these have not proved to be satisfactory. The fact that the Dow Theory frequently leaves the investor in doubt is true in one sense, yet not in another. There is never a time when the Dow Theory does not afford a presumptive answer to the question of the direction of the Primary Trend.
