Category: Dow Theory

Stock Market Outlook: Key Insights from My Chat with Alessio Rastani

posted on: March 8, 2025

Had a great time joining Alessio Rastani on his YouTube channel! We covered some crucial topics, including the most immediate price action for the stock market and what to watch for in the second half of the year. I also shared key insights on what margin debt is signaling right now—a factor that could have […]

Assessing the Bullish Setup for GDX and SIL in a Bearish Stock Environment

posted on: March 7, 2025

The setup for a potential primary bull market in SIL and GDX was completed on 2/27/25 Overview: Despite declining stock prices, gold and silver miners’ ETFs (GDX and SIL) demonstrate resilience and completed on 2/27/25 the setup for a potential primary bull market signal. As of this writing, neither GDX nor SIL haven broken up […]

The Principle of Confirmation can save your skin (III). Example 3: Bitcoin breakup turned into a bull trap

posted on: February 17, 2025

Applying the Confirmation Principle to Cryptocurrencies Two earlier analyses (HERE and HERE) demonstrated the effectiveness of the confirmation principle when applied to U.S. stock indexes and bonds, highlighting its value in avoiding trading fakeouts. This principle suggests that a new high or low unconfirmed by another asset or index has a high probability of failing. […]

Secondary reaction for the gold and silver miners ETFs signaled on January 30, 2025

posted on: January 31, 2025

The primary trend remains bearish Overview: All markets are sensing that a new wave of liquidity will be released. Gold, stocks, bonds, and crypto are edging higher. The gold and silver miners’ ETFs, mired in a bear market, have experienced a rally. However, this rally is not enough to change the trend from bearish to […]

While the Bear market in bonds persists, a secondary reaction was signaled on January 30, 2025

posted on: January 31, 2025

Overview: It looks like all markets are sensing that a new wave of liquidity is about to be released. Gold, stocks, and crypto are edging higher. Notably, even bonds, which have been mired in a bear market, have experienced a rally. General Remarks: In this post, I extensively elaborate on the rationale behind employing two […]

Dow Theory signal: Bear Market for Gold and Silver Miners triggered on 12/18/24

posted on: December 20, 2024

Analyzing the Impact of Powell’s Hawkish Stance on GDX and SIL Overview: All markets, gold and silver miners included, reacted negatively to Powell’s more hawkish stance, as investors had anticipated more substantial and frequent rate cuts. The big drop GDX and SIL experienced on 12/18/24 triggered a primary bear market signal. The precious metals themselves, […]

When Trends Speak Louder Than Data: Why Trend Following Wins Against Macro Investing

posted on: November 21, 2024

AI’s Verdict: Trend Following Trumps Macro in the Investment Arena I often receive emails highlighting macroeconomic data that supposedly contradicts or challenges the signals provided by price action—or trend-following—in markets like stocks, crypto, bonds, etc. These messages can give the impression that trend-following alone isn’t enough to keep us on the right side of the […]

Gold and Silver at a Crossroads: Bull Continuation or Bear Market Ahead?

posted on: November 20, 2024

Breaking Down Gold and Silver: A Critical Moment Overview: In a similar fashion to the gold and Silver miner’s ETFs, gold and silver reached a make-or-break moment on 20/19/24. The setup for a potential bear market has been completed, and the line on the sand has been drawn. In this post, we examine the key […]

Precious Metals Miners at a Crossroads: Bull Continuation or Bear Market Ahead?

posted on: November 19, 2024

Breaking Down the Gold and Silver Miners ETF: A Critical Moment Overview: The gold and silver miners ETF reached a make-or-break moment on 11/19/24. The setup for a potential bear market has been completed, and the line on the sand has been drawn. While gold and silver themselves have not yet completed the setup for […]

Bullish again: Bull market signal for Bitcoin and Ethereum triggered on 11/7/24

posted on: November 14, 2024

It took a while for Ethereum to confirm Bitcoin, but it happened at last. Let’s recap the technical landscape for Bitcoin. Bitcoin and Ethereum made their last bear market lows on 8/5/24. A rally followed such lows until 8/23/24 (Ethereum) and 8/26/24 (Bitcoin). Such a rally qualified as a secondary reaction against the bearish trend. […]

Andrew Horowitz interviewed Manuel Blay on The Disciplined Investor’s podcast

posted on: September 30, 2024

We discussed what works and does not work to successfully time the stock market. I debunked many fundamental factors that have zero predictive power but nonetheless continue to be used by many to try to guess the market’s next move. I focused on what works: margin debt, market health, and some other factors. I discussed […]

Bull market for the gold and silver miners ETFs (GDX & SIL) confirmed on 9/24/24

posted on: September 27, 2024

Chinese Stimulus Sparks Melt-Up in Gold, Silver, and Mining ETFs. Overview: The markets were sniffing the Chinese stimulus days before it was official. All assets are in a melt-up mode; GDX led the parade, and finally, SIL caught up. The bull market in precious metals has been confirmed. Once again, the principle of confirmation saved […]