Follow the Trend Until the End When it Bends: Everything You Need To Know For The Week Ahead

Trends and are equities headed even higher?

“If you can’t take a small loss, sooner or later you will take the mother of all losses.” Ed Seykota

Welcome to Against All Odds Research’s weekly subscribers only report! In this edition, we're bringing you the essential tools that have been the cornerstone of my success for years, enabling me to consistently outperform the market and navigate various financial landscapes with confidence.

I have had some conversations with some of our subscribers. I am going to be making some changes soon that should help everyone understand my process and platform easily. Thank you to those of you who reached out! As I mentioned before I am keeping my prices low at the beginning to reward those of you who have been here since the beginning. This will change soon but those of you who are locked in will continue to stay locked in to these low rates.

Understanding trends is essential to understanding trading. I learned everything from the source. I grew up learning from someone who was 50 years older than me. One thing that has never changed after all these years are trends and how to diagnose them.

Robert Rhea was a market analyst and author known for his work on Dow Theory, which is a theory of market analysis based on the writings of Charles Dow. Dow Theory is a set of principles that helps investors and traders understand market trends and make investment decisions.

According to Robert Rhea, there are three major trends in the stock market: primary trends, intermediate trends, and short-term trends.

1. Primary Trends: These are the long-term trends that last for several months or years. They represent the overall direction of the market and are typically characterized by a series of higher highs and higher lows in an uptrend or lower highs and lower lows in a downtrend. Primary trends are important for long-term investors, as they can help identify the overall direction of the market and determine when to buy or sell stocks.

2. Intermediate Trends: These are the medium-term trends that last for several weeks or months. They represent the shorter-term fluctuations within the primary trend and are typically characterized by a series of higher highs and higher lows in an uptrend or lower highs and lower lows in a downtrend. Intermediate trends are important for swing traders, as they can help identify short-term trading opportunities within the context of the primary trend.

3. Short-Term Trends: These are the short-term trends that last for several days or weeks. They represent the day-to-day fluctuations in the market and are typically characterized by a series of higher highs and higher lows in an uptrend or lower highs and lower lows in a downtrend. Short-term trends are important for day traders, as they can help identify short-term trading opportunities within the context of the intermediate trend.

Robert Rhea believed that understanding these three major trends is essential for successful market analysis and trading. By identifying the primary, intermediate, and short-term trends, investors and traders can gain a better understanding of the market's overall direction and make more informed investment decisions.