Category: Insights

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 […]

Face off: Schannep versus “classical” Dow Theory

posted on: September 6, 2013

Part IV. Performance comparison under secular bull markets. Until now this series “Face off: Schannep versus “classical” Dow Theory has focused on comparing Schannep’s and “Rhea/classical” Dow Theory irrespective of the secular condition of the market. In part I we set out the premises of our study (so that we conduct an apple to apples […]

Dow Theory Update for September 6: Indecisive day. No changes in trends

posted on: September 6, 2013

Precious metals modestly up. Is a secular bull or bear market? Doug Short has penned on Seeking Alpha a great article concerning secular bull and bear markets. You can find it here Another great article by Doug Short concerning the current state of overvaluation of the stock market can be read here on Seeking Alpha: […]

Dow Theory Update for September 5: Gold and silver miners ETFs weak

posted on: September 5, 2013

Stocks closed up, once again. This is going to be a short post, since there are no big Dow Theory relevant events. Stocks The SPY, Transports, and Industrials closed up. Last Friday, the Transports made a lower low unconfirmed by the SPY and Industrials. The longer non-confirmation persists, the higher the odds for the end […]

Dow Theory Update for September 4: Trends unchanged in spite of stock’s surge

posted on: September 4, 2013

Gold and silver: consolidation or running out of steam? New “page” dedicated to the saga “Face-off: Schannep versus classical Dow Theory” Readers of this Dow Theory blog know that I have been writing several posts concerning Schannep’s superiority versus the “Rhea/classical” Dow Theory (which in itself is also very good, as was demonstrated here, here […]

Dow Theory Update for September 3: Precious metals closed up but remain beneath last recorded highs

posted on: September 3, 2013

Stocks still caught in secondary reaction Let’s get started with our Dow Theory commentary for today on this blog. The SPY, Transports, and Industrials closed up. Last Friday, the Transports made a lower low unconfirmed by the SPY and Industrials. The longer non-confirmation persists, the higher the odds for the end of the secondary reaction. […]