The Dow keeps confounding the bears

The rally in the Dow has defied expectations by rising ever higher. But now the charts are signalling a change, says John C Burford - and it could be dramatic.

I will continue from Friday's Dow coverage, as it is a classic example of how you need to combine strategy with tactics to succeed in trading. That applies to all forms of investing and trading over all time frames.

As all traders know, timing is critical for success. We can be correct in our strategy, but if we get it wrong on tactics (timing), we can still lose money. It's an unforgiving game.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.