Category: Insights

Dow Theory Update for January 30: Stocks closed up and volume fails to confirm

posted on: January 30, 2014

Strebler, of the Dow Theory Letters, nails it down, once again Jon Strebler, Russell’s associate, of the “Dow Theory Letters”, has recently nailed it down again when he wrote “The fundamentalists tell us what should happen, but have a tough time identifying when” I couldn’t agree more. Strebler adds that not only poor timing plagues […]

Dow Theory Update for January 29: Stocks break last minor lows on increasing volume

posted on: January 29, 2014

Secondary reaction continues Let’s get started with our Dow Theory commentary for today. US stocks The Transports, the Industrials and the SPY closed down. Furthermore, all indices violated the last recorded minor low (Jan 27), which adds credence to the ongoing secondary reaction. Volume was larger than yesterday’s, which is also a bearish sign. However, […]

Dow Theory Update for January 28: Stocks rebound on modest volume

posted on: January 28, 2014

Precious metals take a pause. Let’s get started with our Dow Theory commentary for today. US stocks The Transports, the Industrials and the SPY closed up. However, volume was muted, which is a bearish sign. Yesterday we drew your attention to the secondary trend which has turned bearish. The primary trend remains bullish, as explained […]

Dow Theory Update for January 27: Stocks caught in a secondary reaction

posted on: January 27, 2014

Precious metals should rally soon or else… US stocks The Transports, the Industrials and the SPY closed down. Today I can affirm that a secondary reaction has been signaled. Even though it is necessary that at least two of the three indices, we monitor a decline by more than 3% from the latest recorded closing […]

Dow Theory Update for January 24: Stocks close to signaling secondary reaction….

posted on: January 24, 2014

…But we are not there yet. Today, even though no trend was changed, was one of those days where it pays off to follow the markets. Thus, we saw stock indices collapse, whereas gold (GLD) managed to even post modest gains. By the same token, GDX managed to close with minimal losses. Maybe this time […]

Dow Theory Update for January 23: Transports made higher closing high and the SPY and Industrials refused to confirm

posted on: January 23, 2014

Strebler, of the Dow Theory Letters, remains cautiously bullish In recent “Dow Theory Letters,” Jon Strebler, Russell’s associate in the “Dow Theory Letters,” has confirmed the bullishness of the stock market, even though he cautions that, at best, a correction might be in the making. Furthermore, Strebler seems to be paying attention to the SPY, […]

Dow Theory Update for January 22: Transports make higher high unconfirmed

posted on: January 22, 2014

Russell says next bear market will come unannounced. I beg to disagree. In yesterday’s “Dow Theory Letter”, Richard Russell, of the “Dow Theory Letters”, warned his readership that the next bear market “will not provide us with early technical of fundamental signs of trouble” and that it will come “out of the blue”. It is […]

Dow Theory Update for January 21: Something is going on with gold and silver miners

posted on: January 21, 2014

Stocks are being subtly distributed or accumulated. Let’s get started with our Dow Theory commentary for today. US stocks The SPY, and the Transports closed up. The Industrials closed down. Another day goes by when stock indices diverge from each other, which normaly is a sign of distribution. The primary trend is bullish, as […]

Dow Theory Update for January 17: Secondary bullish reaction signaled for SIL and GDX

posted on: January 17, 2014

Primary bear market remains unchanged Today is one of these scarce days when a Dow Theory relevant event occurred. However, since one never knows which day will be the relevant one, the Dow Theorist is advised to keep an eye on the markets on a daily basis. Read below our comment for SIL and GDX […]

Dow Theory Update for January 16: Higher high of Transports remains unconfirmed

posted on: January 16, 2014

Stocks close down US stocks The SPY, the Industrials and the Transports closed down. Yesterday, the Transports managed to better the last recorded closing highs (December 31). However, the SPY and Industrials failed to confirm. The longer price action remains below such highs for the SPY and Industrias, the higher the odds for a secondary […]

Dow Theory Update for January 15: Transports make higher closing high unconfirmed

posted on: January 15, 2014

Can we properly value stocks? Dave Moenning, of the “StateoftheMarkets.com” has penned a brief and insightful article titled “The Market Math of Valuations” which clearly explains why traditional metrics of valuation are more often than not misguiding. You can read his article here: Of course, if valuation is a very elusive subject, then we are […]

Dow Theory Update for January 14: Stocks close up, albeit they fail to make higher closing highs

posted on: January 14, 2014

Trends persist in all asset classes. Followers of this Dow Theory blog know that I am fond of the research of Dorsey Wright. Recently, they have posted an interesting article explaining that trends are not an isolated phenomenon for stocks. Trends exist in all asset classes. What is even more important is that trends persist. […]