Category: Insights

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 […]

Dow Theory Update for September 18: Primary bull market for stocks reconfirmed

posted on: September 18, 2013

Precious metals seem to escape, at temporarily, danger area Today there are Dow Theory relevant news. Let’s get started with today’s Dow Theory commentary on this blog. US Stocks The SPY, the Industrials and Transports closed up. The Industrials and Transports broke out the previous primary bull market closing highs of 08/02 and 08/01 respectively. […]

Dow Theory Update for September 17: The SPY makes a higher closing high unconfirmed

posted on: September 17, 2013

Precious metals: Either consolidating or preparing for the next leg down Debunking value measures Dorsey Wright has penned another great article. This time on the elusiveness of determining value. While easy on the surface, determining value gets tricky, and, hence, the investor can commit grave mistakes when investing for the long haul based on value […]

Dow Theory Update for September 16: Gold and Silver set up for primary bull market signal

posted on: September 16, 2013

Secondary reaction for GDX and SIL signaled today Well, today there relevant events under Dow Theory for the precious metals universe. Let’s get started. US Stocks The SPY, the Industrials and Transports closed up. However, and while not strictly Dow Theory, I saw today many stocks failing to follow the bullish indices. I’d say that […]

Dow Theory special issue: More on the Chinese primary bull market signal

posted on: September 14, 2013

In this post, I explained that a primary bull market had been signaled in Chinese stocks. Let’s look a bit deeper into it. Let’s start by showing an updated chart: Anatomy of a primary bull market signal I will focus on the FXI as it represents 25 big companies. It is the equivalent of focusing […]

Dow Theory Update for September 13: Precious metals arrest their decline

posted on: September 13, 2013

Trends unchanged for stocks and precious metals Chinese stock market Yesterday I posted that, according to the Dow Theory, a primary bull market had been signaled for Chinese stocks. During this weekend I plan to post more details about such primary bull market signal. US Stocks The SPY, the Industrials and Transports closed up. The […]

Dow Theory Update for September 12: Primary bull market for Chinese stocks signaled

posted on: September 12, 2013

Precious metals deflating In a past post, I dealt with Chinese stocks and the then ongoing primary bear market. My blog stats show me that I get a noticeable number of visitors from China. Thus, I think I should devote some more time to following the Chinese stock market. As I wrote in this post, […]

Dow Theory Update for September 10: Setup for primary bear market in stocks even clearer today

posted on: September 10, 2013

Precious metals fall out of bed Dorsey Wright debunks buy and hold The blog of Dorsey Wright money management has posted a brilliant article highlighting the risks of buy and hold. The basic argument runs as follows: · 1. The US and UK are the only countries that had the privilege of not seeing their […]

Dow Theory Update for September 9: Second step for primary bear market signal completed today

posted on: September 9, 2013

However, until proven otherwise, stocks remain in a primary bull market Last Friday I posted a new episode of the saga “Face off: Schannep versus classical Dow Theory,” which you can find here. Let’s get started with our Dow Theory commentary for today. Stocks The SPY, the Industrials and Transports closed up. The primary trend […]