Category: Insights

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. […]

Dow Theory Update for January 13: Stocks and gold and silver miners close to changing secondary trend

posted on: January 13, 2014

However, we are not there yet If you are interested in reading the 2013 Dow Theory review please go here. You’ll see that we tended to be on the right side of the market most of the time. US stocks The SPY, the Industrials and the Transports closed down. The Industrials and SPY made lower […]

Dow Theory Update for January 10: Transports make higher closing highs unconfirmed

posted on: January 10, 2014

Precious metals gather some strength, albeit bearish trend remain unchanged If you are interested in reading the 2013 Dow Theory review please go here.You’ll see that we tended to be on the right side of the market most of the time. US stocks The SPY, and the Transports closed up. The Industrials closed down. The […]

Dow Theory Update for January 9: Irrelevant day for stocks…

posted on: January 9, 2014

…although the Dec 31 closing highs remain untouched. Let’s get started with our Dow Theory commentary for today. If you are interested in reading the 2013 Dow Theory review please go here. You’ll see that we tended to be on the right side of the market most of the time. US stocks The SPY, and […]