Category: Dow Theory

Dow Theory Special Issue: Primary bear market for Chinese stocks signaled last Friday 21st

posted on: August 24, 2015

And some thoughts concerning US Stocks… Market relevant events continue to pile up, while time remains in short supply. Last Friday, FXI broke below the lows of the last secondary reaction (which were made on October, 10th, 2014), and, accordingly confirmed HAO, which had already done so on July 7th, 2015. Confirmed lower lows, means […]

Dow Theory Special Issue: Was it a primary bear market signal under the classical Dow Theory?

posted on: August 21, 2015

Bank of America seems to think so As reported by Zero Hedge, BofA seems to have detected a primary bear market signal by applying the Rhea/classical Dow Theory, as you can read here. However, I have my qualms as to the correctness of such a signal under the classical Dow Theory. On the other hand, […]

Dow Theory Update for August 21 (II): More about the primary bear market signaled for US stocks at the close of August 20

posted on: August 21, 2015

Some hours before, I wrote that yesterday, as per my reading of the Dow Theory (which is Schannep’s with some minor quirks) a primary bear market was signaled. Let’s delve further into it. Here you have an updated chart: Anatomy of a primary bear market signal. As you can see, on the left side of […]

Dow Theory Update for August 19: Lessons learned from the Chinese stock market crash (I)

posted on: August 19, 2015

Trends unchanged. This post was overdue, but time was scarce. While I am an ardent believer in the Dow Theory (of any persuasion whatsoever), I try not to be a fool. The Dow Theory is, in my opinion, the best mean to extract out performance and diminish drawdowns, providedthe market obliges. By an “obliging” market, […]

Dow Theory Update for July 1: Dissecting the ongoing secondary reaction for US stocks

posted on: July 1, 2015

Is paper gold dying? Yesterday, I warned that the secondary trend for stocks had turned bearish on June 29th (secondary reaction against the primary bull market). Please mind that I slightly depart from Schannep when it comes to considering “in the clear” signals and subsequent secondary reactions. More about this small discrepancy here and here. […]

Dow Theory Update for June 30: Secondary (bearish) Reaction for stocks since June 29

posted on: June 30, 2015

No time now for deep explanations, which will come tomorrow, if time allows. Take my word: The secondary trend for US Stocks turned bearish on June 29. Sincerely, The Dow Theorist

Dow Theory Special Issue: Maximum Drawdown and average returns for the Dow Theory versus buy and hold

posted on: June 29, 2015

Trends remain unchanged. This post is the detailed answer to one question posed by a follower of this Dow Theory blog. Hope it will serve Algyros and other readers to further a deeper understanding of the Dow Theory. Here is question: “I was wondering if you had CAGR and Max DD backtested information for your […]

Dow Theory Update for June 24: Gary Antonacci on stops. Let’ s heed the words of a sage

posted on: June 24, 2015

Trends remain unchanged There are three names that shine when it comes to (a) investment practical acumen; (b) avoid BS. These names are (in alphabetical order): 1) Antonacci. http://www.dualmomentum.net/ 2) Moening http://stateofthemarkets.com/ 3) Schannep https://thedowtheory.com/ I have praised Antonacci’s work in the past (here and here). He has recently penned a new article entitled “Momentum […]

Dow Theory Special Issue: On the deceptiveness of trying to gauge value versus cold hard technical action

posted on: June 6, 2015

Now it could be that stocks are not so overvalued after all. This article on Ritholz blog “The Big Picture” seems to suggest that if we adjust for current inflation valuations are not expensive at all. So, all the chatter of overvaluation notwithstanding, it could be that there is not so much secular headwind for […]

Dow Theory Special Issue: US bonds flashing primary bear market signal

posted on: June 3, 2015

We have to wait to today’s close to be sure. Some days ago, I alerted that US debt was flirting with a primary bear market signal. Furthermore, I made clear that a new primary bull market had been signaled for the Euro and CHF. I am writing before the close, so my conclusions are not […]

Dow Theory Special Issue: Dual Momentum versus Dow Theory

posted on: May 30, 2015

Trends remain unchanged I have compared in the past the Dow Theory versus moving averages. Let’s compare now the Dow Theory and Dual Momentum. This post is the edited correspondence with one follower of this Dow Theory blog. He, like I, has read the book “Dual Momentum Investing“, by Gary Antonacci. By the way, I […]

Dow Theory Special Issue: A closer look at the Chinese primary bull market in stocks

posted on: May 20, 2015

Some days ago, I made a cursory reference to an ongoing primary bull market in Chinese stocks. One reader of this Dow Theory blog kindly asked me to further analyze the bull market in Chinese stocks. As I explained here, the Dow Theory can also be applied to foreign stocks indices and even assets other […]