Category: Dow Theory

Dow Theory special issue: After the dust has settled. Weekend commentary to the Dow Theory primary bear market signal

posted on: November 16, 2012

Putting things in perspective Well, we are some hours after the close heading into the weekend, and it is a good time to assess the stock market action and primary bear market signal issued by the Dow Theory. You can find in this postof this Dow Theory blog the basic information concerning the Dow Theory […]

Dow Theory special issue: Is the primary trend for stocks about to change?

posted on: November 10, 2012

As I promised in my previous post on this Dow Theory blog, let’s analyze the current juncture of the stock market, since, as per my interpretation of the Dow Theory, we have the perfect set up for a primary bear market signal. There is only one last shoe left to drop; namely, the Transports breaking […]

Dow Theory special issue: Gold and silver miners ETF secondary reaction

posted on: October 24, 2012

Are we sure? In my Dow Theory Update of October 23, I announced that the Dow Theory had signaled a secondary reaction in the gold and silver miners ETFs. Here you have a chart showing recent price action (until Oct 23) Caught within a line The red line is the SIL/GDX ratio which, as you […]

A primer on secondary reactions under Dow Theory

posted on: October 20, 2012

My detailed answer to a comment left by bstart. Bstart, an attentive reader of this blog, left an interesting comment which you can find here: I quote bstart: “Based on your notes and chart of DJT of http://www.dowtheoryinvestment.com/2012/09/dow-theory-update-for-sept-13-new.html I interpret the SLV behavior differently. Is the following analysis right? 1. 5/16/12 – 26.37 SLV low […]

Special Dow Theory issue: Revisiting the 1987 crash

posted on: October 19, 2012

The Dow Theory saved its followers. As I promised earlier today, here are my two cents on the October 19, 1987 crash. So, how fared those that followed the Dow Theory? Were they spared? The answer if a clear: YES. They were spared. In this study, I will use “classical” Dow Theory with just the […]

Dow Theory special issue: More on the secondary reaction and its implications. II

posted on: October 12, 2012

Should I buy specific stocks or the indices? Continued from this post: http://www.dowtheoryinvestment.com/2012/10/dow-theory-special-issue-more-on.html I closed yesterday’s post in this Dow Theory blog by asking whether one should just buy an index (i.e. IYT, DIA or SPY) or the existence of a primary bull market warrants the acquisition of specific stocks. This is a tough question. […]

Dow Theory special issue: More on the secondary reaction and its implications. Part I.

posted on: October 11, 2012

What do we do with the Transports? Yesterday this Dow Theory blog announced the inception of secondary reaction. You can read more about it here. Today, as you know if you read the previous post in this Dow Theory blog, the Industrials closed down for the day, while the SPY closed up. So […]

What should I do if I missed the Dow Theory bull signals for the SPY? Dow Theory’s second chance: The Transports

posted on: October 8, 2012

Latecomers’ new opportunity to be long stocks In my post “What should I do if I missed the Dow Theory bull signals for the SPY and GLD? Dow Theory’s second chance: The first secondary reaction” which you can read here I explained how latecomers could join in the bull crowd. However, the ideas advanced in […]

Can Dow Theory be applied to foreign and to non-stock markets?

posted on: October 5, 2012

This “Dow Theory Investment” blog is gaining traction and, to be sincere, it is attracting more following than I initially expected. Unjustly, the Dow Theory tends to be badmouthed, and hence I thought it would be a dull subject for most readers. So I am happy to see that there is a growing readership. My […]

Why do I only write about the Dow Theory?

posted on: October 4, 2012

In German, they have a saying that goes: “Schusterbleibt bei deinen Leisten”which translates into Englishas “Clobber,stick to youtrade.” Inother words: Stay focused. For most investors, the Dow Theory is justan extra tool in their toolbox.It lookstoo simple to bethe consideredthe maintool. Furthermore, sinceit looksso simple,everyone believes thata cursoryreading of themain tenetsof DowTheory makes themexperts and, […]

Stock markets forming a „line“: What does it mean under Dow Theory?

posted on: October 3, 2012

Follow up to the Dow Theory update for Oct 3 As I said earlier this evening I see that the SPY and the Industrials are forming a so called “line”. What’s a line? I will use Rhea’s definition to understand what a “line” is under Dow Theory. According to him: “A line is a price […]

Dissecting a secondary reaction under Dow Theory

posted on: October 2, 2012

Result: No secondary reaction yet As I promised yesterday, here you have an updated chart of the Industrials, Transports and the SPY and the implication to be derived from a Dow Theory standpoint. As you can see, only the Transports have fulfilled the requirements for a secondary reaction to exist. The Industrials haven’t even corrected […]