Category: Insights

Dow Theory Update for June 27: Paper gold melting down

posted on: June 27, 2013

Stocks rally on weak volume Time to buy the junior gold miners ETF GDXJ? Mebane Faber of Mebane Faber Research has penned an interesting article named “What happens when you buy assets down 80%”. In the article she analyses the subsequent 3 years return when you buy a sector, industry or country that has declined […]

Dow Theory Update for June 26: Precious metals gap down and fall out of bed

posted on: June 26, 2013

Stocks closed up Piece of wisdom of Gartman, as quoted by Richard Russell. Richard Russell, of the Dow Theory Letters, has nailed it down. When trying to call a bottom in gold, he wrote: “I’m going to be kind and say that gold has put in a base at 1350. I’m going to side with […]

Dow Theory Update for June 25: Stocks closed up. No change in trends

posted on: June 25, 2013

Precious metals listless. Dow Theory and Chinese stocks As you know, the US stock market is in a primary bear market, as I have explained here, and further explained here. I also wrote that less than 5% was lost from peak to trough, which is outstanding timing. So I wanted to see whether the Dow […]

Are Chinese stocks in a bear market?

posted on: June 25, 2013

Chinese stocks and the Dow Theory According to Zero Hedge, the Shanghai composite entered a bear market on June 24, since now it is down -22% from its February highs. Conventional wisdom has it that a bear market is signaled when stocks go down more than 20%. However, is it necessary for investors to wait […]

Dow Theory Update for June 24: Stocks and Gold and silver miners ETFs make lower lows

posted on: June 24, 2013

Digging deeper into a secular bear market Let’s get started with our Dow Theory commentary for today. Is the secular bear market still alive? Last Friday when I was assessing the last position taken in pursuance of the Dow Theory, I wrote that my “benchmark” was the average gain and duration of transactions taken during […]

After the dust hast settled: Commentary to the Dow Theory primary bear market signal

posted on: June 21, 2013

Its implications for investors As I announced earlier today on this Dow Theory blog, today a primary bear market has been signaled. Those really interested in understanding the intricacies of this primary bear market signal, and the setup that preceded it, are encouraged to go here (for today’s description of the primary bear market signal), […]

Dow Theory Update for June 21: Primary bear market for stocks signaled today

posted on: June 21, 2013

People long stocks should get ultra careful Let’s give my readers the “meat” straight away, as today the Dow Theory spoke once again. The Transports by closing below its June 5 lows have just signaled a primary bear market. Yesterday, the Industrials and the Transports violated their respective June 5 lows, and for the reasons […]

Face off: Schannep versus “classical” Dow Theory

posted on: June 20, 2013

Part I. Delineating the object of our study It is no secret that this blogger truly yours has always passionately defended Schannep’s Dow Theory “flavor.” For the uninitiated, it suffices to say that the Dow Theory is not monolithic and, hence, different variations of a common theme cohabit in hopefully peaceful harmony. More about the […]

Dow Theory Update for June 20: Meltdown in all markets

posted on: June 20, 2013

Primary bear market in GDX and SIL reconfirmed With no more preambles let’s get started with a day rich in Dow Theory relevant events. Stocks It goes without saying that the Industrials, SPY, and Transports closed down. As to our vital qualification of trends, here it gets tricky today. If I’d follow 100% Schannep (and […]

Dow Theory Update for June 19: Primary bear market for gold and silver reconfirmed

posted on: June 19, 2013

Stocks take a nosedive. Stocks The SPY and Industrials, and Transports closed down. The primary trend is bullish, and the secondary one is bearish for the reasons given here. Today’s action brought the stock indices closer to the June 5 lows. If the June 5 lows were to be violated a primary bear market would […]

Dow Theory Update for June 18: Who is one of the best market timers as per the Wall Street Journal?

posted on: June 18, 2013

Answer: Jack Schannep of “thedowtheory.com“ Mark Hulbert, of MarketWatch.comhas recently penned an interesting article for the Wall Street Journal, whereby market timers are scrutinized. You can find Hulbert’s article here. The article begins with a pearl of common sense. I quote: “The best-performing advisers who focus on calling market turns are giving the bull market […]

Dow Theory Update for June 17: No change in trends

posted on: June 17, 2013

Precious metals meandering Stocks The SPY and Industrials closed up. The Transports closed down. The primary trend is bullish, and the secondary one is bearish for the reasons given here. The stock market remains in a delicate situation. If the June 5 lows were to be violated a primary bear market would be signaled, as […]