Category: Insights

Dow Theory Update for June 12: GDXJ displays bullishness for gold stocks and gold

posted on: June 12, 2014

Stocks close down US Stocks The SPY, Transports and Industrials closed down. Recent declines are healthy, as the market needed to digest its overbought status. It is too soon, though, to spot a secondary reaction against the primary bullish trend. The primary trend remains bullish, as explained here, and more in-depth here. The primary trend […]

Dow Theory Update for June 11: No post today. Trends remain unchanged

posted on: June 11, 2014

Sincerely,The Dow Theorist

Dow Theory Update for June 9: Trends unchanged.

posted on: June 9, 2014

No time to write today. Trends (primary and secondary) remain unchanged. Stocks becoming even more overbought. Sincerely, The Dow Theorist

Dow Theory Update for June 6: Industrials, Transports and SPY make higher closing highs

posted on: June 6, 2014

Does momentum investing really work? If you still doubt it, go and read my yesterday’s post. US Stocks The SPY, Transports and Industrials closed up, and all of them made higher confirmed closing highs. The bullish picture for stocks continues. Eventually, trends will change but my Dow Theory readings continue to tell me what they […]

Dow Theory Update for June 5: Fact, fiction and Momentum investing

posted on: June 5, 2014

Debunking anti-trend following myths and how the Dow Theory boosts momentum strategies. AQR Capital Management has recently issued a working paper, which confirms something Dow Theorists, and in general trend followers have never doubted: Momentum (trend following) works. Dorsey Wright’s website has published the whole paper, which you can read here. The conclusions […]

Dow Theory Update for June 4: Steen Jakobsen Expects A 30% Stock Market Correction in 2014

posted on: June 4, 2014

Should Dow Theorists panic? Zero Hedge reports that Steen Jakobsen, Chief Investment Officer of Saxo Bank, believes that in the second half of 2014 stocks are likely to correct 30%. Such a prediction is based on fundamental reasons, of course. So what should be done? My answer: Nothing. We should do nothing because as Dow […]

Dow Theory Update for June 3: Is it a secular bull market?

posted on: June 3, 2014

We, primary trend Dow Theorists, simply don’t care Ed Yardeni, of the Dr. Ed’s Blog, has just posted that the Dow Theory is bullish. I agree with him. In his post, he states (something which has been defended by Schannep of “thedowtheory.com” long time ago) that we are in the midst of a powerful secular […]

Dow Theory Update for June 2: Industrials, Transports and SPY make higher closing highs

posted on: June 2, 2014

And hence, the odds favor the continuance of the primary and secondary trend. Let’s see what the Dow Theory has in store for us today. US Stocks The SPY, Transports and Industrials closed up, and thereby made higher closing highs. According to the Dow Theory confirmed higher highs tend to signal that the current trend […]

Dow Theory Update for May 30: Industrials and SPY make higher highs

posted on: May 30, 2014

Gold and Silver extend losses. US Stocks The SPY, and Industrials closed up, and thereby made higher closing highs. The Transports closed down. The primary trend remains bullish, as explained here, and more in-depth here. The primary trend was reconfirmed as bullish on October 17th, 2013, and November 13th, 2013 and March 7th, 2014, for […]

Dow Theory Update for May 29: SPY and Transports make higher highs.

posted on: May 29, 2014

Trends unchanged No post today. Sincerely, The Dow Theorist

Dow Theory Update for May 28: Manipulation and the Dow Theory.

posted on: May 28, 2014

Transports make higher closing high unconfirmed. Recently, one comment on one post of mine on Seeking Alpha raised the point of manipulation and how it can affect the Dow Theory. Here you have the question and my answer: Sharpe_Spectator Lets say the fundamentals are messed up and a group of fund managers get together […]

Dow Theory Update for May 27: Precious metals melt down

posted on: May 27, 2014

The SPY and Transports make higher closing highs US Stocks The SPY, Transports and Industrials closed up. On May 19, the Transports made a higher closing high which was confirmed last Friday by the SPY. So confirmation has occurred pretty quickly, which technically, and all the gloom and doom notwithstanding, tells me that the odds […]