YouSaid · the spoken record

Tom Dorsey

lines on the record: 146
first: 2016-04-01
most recent: 2016-04-01
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“One Called point and figure charting. Exactly that. And you'll see my picture on the cover. It's the fourth edition, point and figure charting. It's pretty much all you need to know. You know, we've been hiding in the open for 28 years. You read that book. You see exactly what we do. We tell you exactly how to do it. But nobody wants to do it. You know, a Harvard professor once said, people don't want the quarter inch drill. They want the quarter inch hole. And that's what we try to provide. Give them a.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you could go to Dorseyrite.com, www.dorseyrite.com. We do a podcast every week that's free to anybody. If you just go to that site, DorseyWright.com, you can see it. And we're one of the oldest podcasters in the country. We're on 500 and some weekly podcasts.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And that's a great way to look at it. So sometimes it's the Senate, sometimes it's the Congress. You just wait to see what happens because they both sit down, they arm wrestle every single day, and you watch and see who's going to be winning. You don't change on a daily basis. Signals on relative strength and point and figure can last two to two and a half years.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's exactly right. And when I explain capweight to people, it's like Congress and the Senate. Congress is capweighted. If you look at California. The foreign state, the more state, the more representatives. The Senate is equal-weighted. Every state gets to. Everybody gets two. That's a great”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, that could be that's the thing. It's a trillion dollar question. You don't know how long that road is. So you have to wait until the actual change, the relative strength charts begin to change and begin to win the arm wrestling contest. You'll find, I think if commodities is one of the ones that's going to move up to number one, like 2008, commodities held number one rank for a while. If that's going to be the case, then you probably find international move up too. During the decade of 2000 to 2010, the last place you'd want to invest in equities was the United States. International was the play that whole time.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is at the bottom. But I'm finding some international emerging markets. I trade Indonesia direct, doing extremely well there in Indonesia.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Something is going on here, and there's a major change taking place. I see commodities began to move up from number six level to number five level.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's fascinating. Chu place was held for a few weeks, and it's still marginally there is cash. Now that was interesting. Cash has moved up. Now, to us, cash has a symbol M-N-Y-M-K-T. So we look at it just like regular money market. We look at that symbol like it's IBM or General Motors or whatever. And it has moved up to number two spot.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's interesting because what went to number one and number two in that now six asset classes that we have, we look at international equities, US equities, cash, fixed income, commodities, and foreign currencies. What moved into number one place, fixed income.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Relative strength for those years, you find this year and 2016, you're at a loss relative to the SP 500. That's when people begin to get upset. They think everything has to be perfect.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it's not so much the pushback that there's a new game, it's the pushback that when you say there's a new game and they don't see the new game yet, we're experiencing it right now. Right now there's a major change taking place in this market. When you think back to October of 2011, that was a tough year. But at the end of 2011, all of a sudden for us, the six asset classes, U.S. equities became number one that you should overweight in your portfolio. And that stayed from 2011 to 2016. Just recently it moved out of number one place, number two went to number three, slid back to number two marginally, but it's saying something is wrong here. But what's happened is you have healthcare, biotechnology, drugs and whatnot that helped carry this the whole way have totally fallen out of bed. So they had positive relative strength when they came out. I mean, it was like the snap of a finger, bingo. Now all the things that you were doing that were positive.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's that relative strength calculations that we do, and they're done every night. They don't change every night. I mean, this was five years coming, and all of a sudden you're watching these two guys arm wrestle, and the guy who loses every single time for five years all of a sudden beats the other guy. Why? He's in the gym working out. He's getting stronger. You don't realize it, but all of a sudden that day comes that he wins. And if you're watching it and you have alerts set, it can't escape you.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely. Because toward the end of the 1900s, that's a point in time where when it switches to cap weight, it's saying, you know what, you should own an index. Just own the S&P 500. Don't worry about diversifying. That's what you should own. And that's where it was at the end of 1990s and into the year 2000. Most of the time from there, it's been a market of stocks where you want to own individual stocks. But that was a point in time you want to own the index”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, absolutely. And they don't go in and just buy today and they buy until they've got enough, and that's it. And then they go do something else. They have more accounts coming in, more money coming in. They're going to buy in the right places. Take, for instance, back in the year 2000, October 2000, an interesting thing happened. All of a sudden, after a number of years where large cap was the place to be, large cap and cap waited was the place to be, it switched to small cap and equal weight. And not only it went from growth, which was the place to be, to value. And that was a major change. All you had to do at that point in time with that major change is by a value stock equal weighted, small cap, and leave your customer alone for the next 13 years. Go play golf every day. You did much better. Precisely. You did extremely well. So these things are not overnight phenomenons that happen. And there was buying pressure in that for probably 13 years until this begins to change. So put that in.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Tend to stay in motion until acted upon by an opposite force. That's the same thing that happens in the market. People are trying to catch a knife so often. They want to buy things that are down or going down. They think the lower I buy it, the better I'm going to be, get a nice bounce back up. That's not the case. Things in motion tend to stay in motion. That's where you want to be. And what acts upon it, it's all supply and demand. If you have demand for a particular stock, there are more buyers and sellers willing to sell, price is going to rise. Until all of a sudden supply comes in, that's where that opposite force comes in. And supply overtakes the amount of demand available, the up move stops, and it begins a down move. So that's really all it is.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a challenge. Precisely, but instead of trying to call the point that you're at the end of the cycle, let the work do it. Let the relative strength do it. And when that changes and it points to another direction, that's where you go. And so instead of sitting back saying, gee, whiz, I've got a PhD and this and that and mathematics, and I'm going to figure out when that end is. No, wait for the rules-based program to do it.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Against cash Cash was in there as the risk management tool of the piece and whichever one won the armresting contest against the three, 100% of the portfolio went in.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I compared and contrasted three things on a relative strength basis. The Standard Poor's cap weight against the Standard Poor's equal weight both trade. They trade totally differently.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Come up with the ideas. We sat in a circle for 28 years. Nobody's ever had an office at Dorsey Wright. I never had an office at Dorsey Wright. We sit together. So there's a constant... Hum in the office of discussing things and talking about different things. And they all come from that type of thing. Person will, a company will call us and say, hey, we're interested in X, Y, Z. Can you create that for us? Then the ideas start to float around. And they come in the most unusual ways. I was looking one day out the window and I saw a guy cutting the grass with one of these big mowers. And I thought to myself, who helps him? Does he go to a major wirehouse and open an account with two thousand dollars? No, they don't let him in the door. So who helps him? So I created a model called the People's Portfolio.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. Now we do overnight seven and a half million relative strength charts every single night comparing the world, Malaysia to Indonesia, Indonesia to France, France to the United States, everything you can think of.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then go to number two relative to all five. Then number three relative to all 500. So 250,000 charts, you got to have a lot of employees or good computer or a computer.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“The second one's doing it. Precisely. It's a spread between the two. Exactly. And if I did that on the SP 500, we have to create 250,000 charts”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's amazing, but boy, just like you said, how do you get a better feel than doing it that way? But you can't do, you know, there's only a certain amount of things you can do. Take, for instance, if we wanted to create a matrix on the standard poor's 500, in other words, I want to create, the way we do a relative strength chart is divide one thing by another. If I wanted to compare Coca-Cola to Pepsi, I would divide the price of Coke by Pepsi. That gives me a number. I take that number. I plot it on a chart. It looks like a regular trend chart, but it's not. It's a relative strength chart between the two.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And we do 500 stocks a day, pass the book to the next person. They did that by the end of the week. Each person had seen 2,500 stocks.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I remember the companies. That's exactly right. We used to do $2,500 a day before we had the computer capacity to do it. So technically, how many people would do?”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Barry, that's a great question because technology has had such a major effect on our whole industry. Anything that can be automated will be automated. And you got to understand that. With technology, our relative strength work that we do for our ETFs and the comparisons and contrasts we do, we used to do by hand back 28 years ago”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, absolutely. I mean, it's something that we did 28, 29 years ago. We used to do that by hand because we didn't have computer systems to do it.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Relative strength is like an arm wrestling contest. You might have two people, and everyone's seen an arm wrestling contest, and you see two people on television arm wrestling and one guy summarily beats the other guy. He has better relative strength than the person he just took.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the other ones that we pay attention to are bullish percents on other types of indexes like the Nasdaq that we do bullish percents on all the sectors. We look at the percentage of stocks that have positive relative strength in a particular industry sector or the market. And it's the same zero.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So when you have the football, you should be playing offense. Now, field position is a different story. If you're near the 70% level, that would suggest that everyone is in that wants to be in, and you may have the football, but your field position is terrible. That tells you what plays you probably should run. If you're down at the 20% line, 20% level, and you have the football, then you can run much more aggressive plays. Conversely, when it's in a column of O's and declining, in other words, more stocks going on cell signals, which is a column of O's exceeding a previous column of O's, it suggests to you that the defensive team is on the field. Play it that way. Play defense. And that's probably the most important market indicator that we have ever had created back in 1955. And I could effectively manage the market just with that.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Beyond a certain range. That's right. And you can see it's so visual, it's unbelievable. The computer can see this easily. When you look at the New York Stock Exchange, which has about 2,000 stocks on it, somewhere in that area, and we calculate the percentage of stocks that are on buy signals, that means if we went through, if I gave a seventh grader every chart on the New York Stock Exchange and said, look to the far right hand side and every stock you see that has a column of X's that exceeded a previous column of X's, count it as over here, set it in a pile, then we'll divide by the total, and we get a percentage from zero to 100. So there are different risk levels, but in general, when it's in a column of X's and rising, you have the football.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And Ernest Staby began thinking about what we needed in the market. And he basically said, we need a soulless barometer that will begin becoming negative when the market's at the top and positive when the market's at the bottom, something totally confounding to investors, that when things look the best, we need to start getting negative. So in 1955, A.W. Cohen created what's called the bullish percent index. Now, the beauty about a point and figure chart is a buy or sell signal. A buy signal is simply a column of X's that exceeds a previous column of X's. That's simple. Just think in your mind. That's all. X's that exceeds a previous column.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So they only whisper when a particular signal is given or something should be done with a point and figure chart yells at you. You see a stock rise to a particular point four times and it can't get through that level. And the fifth time it finally gets through that level, it's yelling at you and says, you know, that supply that was at that level all this time could be even a few years in the case of Coca-Cola back in 1992. Could be a few years. And finally it's sopped up all that selling pressure and this breakout suggests it's going much, much higher.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, one of the things is it's number one easily programmable because the computer already understands ones and zeros. It understands X's and O's like you can't imagine. There are relative strength things that we can do with the point in figure charting that you really can't do with bar charts. Bar charts are updated every day, no matter how inconsequential the move is.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You need to have some background and not that much background. I mean, I'm not selling a book, but you could read my book in here, and you've got enough.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“The irrefutable law of supply and demand, and this methodology was created simply as a logical organized way of recording the imbalance between supply and demand.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it was totally by accident, Barry, because when Wheat First Securities hired me to leave Merrill Lynch and come across and develop and manage their first option department, I realized I need to hire somebody who really understood the markets, and I hired this guy from Charlotte, North Carolina, named was Steve Kane, and he brought with him a little book written in nineteen forty seven called The Three Point Reversal Method of Point and Figure Stock Market Trading by AW Cohen, and he said, would you read this so you understand the operating system in my mind when I come to you with a stock or the sector or the market or that type of thing? I said, I'd do it. And I took it to Virginia Beach that weekend with my wife read the first paragraph of the introduction, brought me back to my economics education in the university, and I had the epiphany right then, that I knew I had to teach this to my brothers and sisters for the rest of my life because it brought me back to Econ 101, which was the most important course I ever had in university.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, because point and figure charts are not updated every day, there are certain things that have to happen before a chart is updated. It's made out of X's and O's and looks kind of funny to people, but there is a learning process that you have to go through to understand the buy signals and cell signals in point and figure.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“But I realized if I'm going to be successful, I had to become an expert at something. So I chose the option market, which had just daybreak. year before in April of 1974. So I became an expert in options by ultimately that led to the Wheat versus securities which was a large regional”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“To Merrill Lynch in Richmond, Virginia picking up the phone, and now I'm on the White Horse and I'm going to help everyone. And they just lost about 60% of the time.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It was a drop because I started exactly at the bottom of the market when people had been wiped out between 1972 through 74.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. And typically what happens there, really, when you're looking at a rule. Like ours, which is relative strength. It's like A car To find traction, so you go from first Gear, you let off the gas, you push You changed it from first to second. You put the clutch. Back out, you put the gas back on, you've lost momentum. And then once you catch That's when you found the direction, but when there's no direction whatsoever.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, that's a good question, Barry. Because, again, like I said, you're dealing with human emotion. When you embrace, when you sit down with your advisor and he's using a billboard, Rules to you, and you embrace those rules. That's where you need to step. Let it happen when things Feel bad, that's the time typically in that type of a program to add money to the portal. Not take money out. Take, for instance, what we do is probably going to underperform maybe once every four quarters. That nature”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“To face it, and that's exactly what happens here the strategy is great until all of a sudden you feel sick to your Stomach, the market is going down, and it's let's get out. And it's getting out exactly at the wrong time. Hard part is what we have done at Dorsey Reddy is we've taken the Out of it and made everything So when it feels the worst, you have to understand that the system Approach is going to do its Job. Sometimes it doesn't feel so good like right now? But most of the time, it works fine”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, that's the thing. People are human. Well, it's like Mike Tyson said you walk into a ring with all kind of plans and a strategy until you get hit one time.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, when you're thinking about modern portfolio theory, it's something that goes back probably. 40 years ago and It's fundamental. And hold. Person comes into an office, takes a test, determines that he's a moderate investor, immediate goes into Into a moderate pie, and that's rebalanced. Twice a year That way as long as your risk Don't change. So you've got to come in and retake a test to make your risk level change before anything will change there. So it can miss a lot of changes in the overall market. But it's something that you'll probably find that 90% of advisors use.”
2016-04-01 · Masters in Business · Interview With Tom Dorsey: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source