Category: Insights

Dow Theory Update for October 8: In spite of meltdown primary trend for stocks remains bullish

posted on: October 8, 2013

Today, once again, I am quite short of time. In spite of today’s meltdown, the primary trend for stocks remains bullish. Of course, the secondary trend remains bearish. Tomorrow, I’ll report more in-depth. See you then Sincerely The Dow Theorist

Dow Theory Update for October 7: Stocks extend secondary reaction by making lower lows

posted on: October 7, 2013

Formidable article concerning the secular condition of the market Zero Hedgenailed again by posting an article featured by Ed Easterling of Crestmont Research via dshort.com . The article makes clear that current valuations are far from those seen at the start of secular bull markets. Furthermore, the authors conclusively show that the “hangover” from the […]

Dow Theory Update for October 4: Stocks close up. Secondary reaction unchanged

posted on: October 4, 2013

Precious metals remain anemic Let’s get started with our Dow Theory commentary for today on this blog. US Stocks The SPY, the Industrials and the Transports closed down. The primary trend is bullish, as explained here, and more in-depth here. The secondary trend was signaled as bearish yesterday, which amounts to a secondary reaction […]

Dow Theory Update for October 3: Secondary reaction for stocks announced today

posted on: October 3, 2013

The primary trend remains bullish, though. Let’s get started with our Dow Theory commentary for today. US Stocks The SPY, the Industrials and the Transports closed down. The primary trend is bullish, as explained here, and more in-depth here. The secondary trend has been signaled as bearish today, which amounts to a secondary reaction against […]

Dow Theory Update for October 2: Stocks close down but refuse to make lower lows

posted on: October 2, 2013

Richard Russell might be on to something Richard Russell, of the “Dow Theory Letters” brought our attention to the “broadening formation” that is becoming apparent in the Dow Industrials. The broadening formation is made of five ways: three ways up and two corrective ways down. The chart below (weekly chart of the Industrials since 1997) […]

Dow Theory Update for October 1: Precious metals flirt with disaster

posted on: October 1, 2013

And trends remain unchanged US Stocks The SPY, the Industrials and the Transports closed up. The primary trend is bullish, as explained here, and more in-depth here. The secondary trend is also bullish for the reasons explained here, even though if the current pullback extends its decline it could turn soon bearish. Today’s volume was […]

Dow Theory Update for September 30: After my brief hiatus, nothing changed

posted on: September 30, 2013

Primary and secondary trends remain unchanged After four trading days of absence, and now with a somewhat less congested schedule, here I am again, ready to analyze the markets under the prism of the Dow Theory. The last four days did not result in any noteworthy Dow Theory event, which accounted for my silence. Accordingly, […]

Warning: During the rest of this week, it is likely that I will not be able to post

posted on: September 24, 2013

Dear readers of this Dow Theory blog. Due to a busy schedule, I fear I am not going to be able to post my daily commentary. Only if I saw a change in primary trends, then I’d endeavor to find time to provide you with an update. Otherwise, “no news good news”. Sincerely, The […]

Dow Theory Update for September 23: Deflationary day

posted on: September 23, 2013

No change in trends. Last weekend I posted this article which makes clear the beauty of the Dow Theory at keeping drawdowns and losses under control. You can read it here. US Stocks The SPY, the Industrials and the Transports closed down. The primary trend is bullish, as explained here, and more in-depth here. […]

Dow Theory Special issue: Visualising drawdowns

posted on: September 21, 2013

Buy and hold versus Schannep’s Dow Theory An image is worth than thousand words. I have profusely written on this blog about the excellent job Schannep’s Dow Theory does at containing losses. Well, today I won’t give stats. Just three charts (created by courtesy of TradeStation ®) which are self-revealing. The first chart is the […]

Dow Theory Update for September 20: Stocks closed down on high volume

posted on: September 20, 2013

Trends unchanged Let’s get started with our Dow Theory commentary on this blog for today. US Stocks The SPY, the Industrials and the Transports closed down. The primary trend is bullish, as explained here, and more in-depth here. The secondary trend is also bullish for the reasons explained here. Today’s volume was higher than yesterday’s, […]

Dow Theory Update for September 19: Stocks take a breather

posted on: September 19, 2013

Trend unchanged Is a new secular bull market born? This is what Dave Moenning thinks, albeit he cautions that in “real time” it is very difficult to tell whether the secular tide has turned bullish. Dave has penned on “Seeking Alpha” and article that is worth reading. He is an old timer and shrewd enough […]