DIVIDEND MACHINE

Dividends for FEBRUARY 2015

                 $196.03 total
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The U.S. stock market’s major trend now is down, so act accordingly.

That’s what the Dow Theory, the oldest stock market timing system that remains in widespread use today, is saying. It was created a century ago by William Peter Hamilton, who at the time was the editor of the Wall Street Journal. He introduced his theory in dribs and drabs over the first decades of the 20th century on that paper’s editorial page.

Though not all adherents of the Dow Theory see eye to eye on how to translate Hamilton’s editorials into specific market-timing rules, they generally agree that the market must jump over three hurdles before a “sell” signal is generated. They are:

• Hurdle 1: Both the Dow Jones Industrial Average and the Dow Jones Transportation Average must undergo a “significant” correction from new highs.
• Hurdle 2: In their subsequent “significant” rally attempt following that correction, either one or both must fail to rise above their pre-correction highs.
• Hurdle 3: Both averages must then drop below their respective correction lows.Read the rest