Category: Dow Theory

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 […]

Dow Theory Update for February 16: Does the Dow Theory work when applied to US bonds? (I)

posted on: February 16, 2022

Answer: YES! This is a long post that took a good deal of research. If you want to become convinced about the Dow Theory being arguably the best timing system for trades lasting more than six months, continue reading. Dow Theorist Hamilton stated that the Dow Theory could be applied to other markets. However, he […]

Dow Theory Update for January 10: Primary bear market for US bonds signaled on 1/5/22

posted on: January 10, 2022

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 the iShares 7-10 years Treasury bond ETF. More about […]

Dow Theory Update for January 8: Setup for a potential primary bear market in precious metals completed

posted on: January 8, 2022

Primary trend for US interest rates bearish 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 […]

Dow Theory Update for December 30: Classical Dow Theory trends update

posted on: December 30, 2021

“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 On 11/02/2021, the Dow Transportation confirmed the Industrials in […]

Dow Theory Update for December 14: Precious metals under a secondary reaction against the primary bull market.

posted on: December 14, 2021

US bonds and US stock indexes remain in a primary bull market 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 for December 3rd: Primary bull market for US Bonds signaled on November 30

posted on: December 3, 2021

Despite the current pullback precious metals and their miners continue in a primary bull market Sorry for the delay in posting. I was immersed in the drafting of our December 1st Letter to Subscribers. Now, little by little, I begin to catch up. I don’t have time today to write about precious metals. The current […]

Dow Theory Update for November 16: Recap of the Dow Theory outperformance across many markets

posted on: November 16, 2021

GLD/SLV, GDX/SIL, USO/XLE, TLT, and the Dow Industrials Is the Dow Theory only for US stock indexes? Does it work? Is it not a thing of the past? The Dow Theory works and outperformed Buy & Hold across many markets (energy, precious metals, and their ETF miners, US bonds, US stock indexes). Look at the […]

Dow Theory Update for November 13: Primary bull market signaled for gold, silver, and their ETF miners on November 11th

posted on: November 13, 2021

Secondary reaction against the primary bear market in US bonds 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. […]