Ed, Thank you for giving me opportunity to explain to you, sir;
The first tenet of the DOW Theory is:
" THE PRICES AT ANY MOVEMENT DISCOUNT EVERYTHING ""EXCEPTS THE ACTS OF GOD"" BECAUSE THEY REFLECT THE COMBINED MARKET ACTIVITIES THAT THOUSANDS OF INVESTORS[including you and me are PENNY STOCKS speculators), INCLUDING THOSE THE GREATEST FORESIGHT (those who have discerned eyes), AND THE BEST INFORMATION ON TRENDS {like you said news), AND EVENTS,THE PRICES IN THEIR DAY-TO DAY FLUTUATIONS DISCOUNT EVERYTHING KNOWN,EVERTHING FORESEEABLE, EVERY CONDITION WHICH CAN AFFECT THE SUPPLY OF OR DEMAND FOR COMPANIES SECURITIES. EVEN UNPREDICTABLE NATURAL CALAMITIES WHEN THEY HAPPEN {or drilling results!!!!!}, ARE QUICKLY APPRAISED AND THEIR POSSIBLE EFFECTS DISCOUNT.
This is my explanation SIR. It doesn't matter blue chips DOW stocks or CWA, DML penny stocks. DOW THEORY would apply, however, an extra cautious be taken care in penny stocks because of risks and rewards are much in greater dimension than that blue ship stocks--more slow and stable type, that is why discerned eyes is crucial.
John |
