Category: Dow Theory

Can the Dow Theory be applied to Sectors? Answer: YES

posted on: June 10, 2022

Can the Dow Theory be successfully applied to sectors? Yes, and it works great. In most cases, there is even more outperformance and drawdown reduction versus Buy and Hold than when applied to Indexes. In a future post, I will explain why the Dow Theory works with sectors and what sectors stand to profit most […]

Dow Theory Update for June 6: Setup for a potential primary bull market in U.S. bonds completed

posted on: June 6, 2022

Update on the trends for precious metals. US INTEREST RATES General Remarks: In this post, I provided a thorough explanation concerning the rationale behind my use of two alternative definitions to appraise secondary reactions. TLT is the iShares 20 years + Treasury bond ETF. More about it here IEF is […]

Dow Theory Update for May 27: Finally, a secondary (bullish) reaction has been signaled for US bonds

posted on: May 27, 2022

The primary trend remains bearish, though It has been a long time without providing an update concerning US bonds. In fact, it was not necessary as the trend has been “down” for many months now, so no changes occurred. I am writing before the close, so things might change. US INTEREST RATES […]

Dow Theory Update for May 26: Catching up with precious metals & their ETF miners

posted on: May 26, 2022

GOLD AND SILVER In this post, I provided a thorough explanation concerning the rationale behind my use of two alternative definitions to appraise secondary reactions. A) Market situation if one appraises secondary reactions not bound by the three weeks dogma. The primary trend was signaled as bullish on 11/11/21, as I explained […]

Dow Theory Update for May 13: All investing strategies need protection against bear markets. Three examples. Make no mistake about it.

posted on: May 13, 2022

A brief update on the trends for U.S.U.S. stocks, U.S. Bonds, and precious metals & their miners’ ETFs. The primary trends for gold & silver, SIL & GDX, and U.S. bond markets have not changed since I last reported. What is new since my last reporting is a nasty secondary reaction against the […]

Dow Theory Update for April 26: Shorting US bonds with the Dow Theory. Does it work?

posted on: April 26, 2022

Answer: Yes! Readers of this blog should know by now that the Dow Theory works. The measure of “working” is twofold: (a) drawdown reduction and (b) outperformance versus Buy & Hold (B&H). I recently explored the “long side” of the Dow Theory with US bonds (ETFs: TLT & EDV). The results were outstanding, as you […]

Dow Theory Update for April 20: Update on the trends for precious metals and their ETF miners

posted on: April 20, 2022

The trend for US bonds remains bearish I am posting before the close, so things might change. Please do your homework. GOLD AND SILVER In this post, I provided a thorough explanation concerning the rationale behind my use of two alternative definitions to appraise secondary reactions. A) Market situation if one appraises secondary […]

Dow Theory Update for April 19: Classical Dow Theory trends update

posted on: April 19, 2022

Trends for US bonds and precious metals unchanged “Rhea’s /classical” Dow Theory Depending on the way one appraised the secondary reaction following the 3/23/2020 bear market bottom, the primary trend was signaled as bullish, either on 4/29/20 or 5/26/2020. Please check the links to fully apprehend the two alternative ways: http://www.dowtheoryinvestment.com/2020/05/dow-theory-update-for-may-15th.html http://www.dowtheoryinvestment.com/2020/06/dow-theory-update-for-june-3-us-stocks.html The Dow […]

Boosting the Dow Theory: Relative Strength System with Dow Theory for the 21st Century filter

posted on: April 4, 2022

What happens when one mixes a great timing indicator like the Dow Theory for the 21st Century (DT21C) with a relative strength system? Answer: Even more outperformance and a better risk-reward profile v. Buy and Hold (B&H). Relative Strength (RS) is based on the proven fact that assets (stocks, indexes, sectors, commodities, etc.) […]

Dow Theory Update: Does the Dow Theory work when applied to US bonds? (III)

posted on: March 22, 2022

Comparisons between the Dow Theory, a moving average system and Buy and Hold In the previous two posts of this saga, we saw that both TLT and EDV vastly outperformed B&H while dramatically cutting drawdowns. http://www.dowtheoryinvestment.com/2022/02/dow-theory-update-for-february-16-does.html http://www.dowtheoryinvestment.com/2022/03/dow-theory-update-does-dow-theory-work.html Inquisitive minds could think that, after all, the period examined was overall bullish and that any […]

Dow Theory Update for March 9th: Primary bull market signaled for gold and silver on 3/1/22 when one takes the “longer-term” interpretation of the Dow Theory.

posted on: March 9, 2022

The primary trend also bullish when one takes the “short-term” interpretation. GOLD AND SILVER In this post, I provided a thorough explanation concerning the rationale behind my use of two alternative definitions to appraise secondary reactions. A) Market situation if one appraises secondary reactions not bound by the three weeks dogma. […]

Dow Theory Update: Does the Dow Theory work when applied to US bonds? (II)

posted on: March 7, 2022

Performance with extended duration bonds (EDV) In the previous post, I proved that the Dow Theory works well with US Bonds. We determined the trend by using TLT and IEF and applying the trend so appraised to TLT which corresponds to US bonds with remaining maturities greater than 20 years. Today we are […]