The markets discount everything, news, results, rumors and all future events.
• Primary trend is interrupted by a secondary reaction which lasts on average of three weeks to a few months.
• A primary trend will pass through three phases, according to the Dow Theory. In a bull market, these are the accumulation phase, the public participation (or big move) phase and the excess phase. In a bear market, they are called the distribution phase, the public participation phase and the panic (or despair) phase.• Trends persist until a clear reversal occurs, so ‘The trend is your friend’.
, , Dow Theory, Double Bottoms, Double tops, dow
