Category: Insights

Dow Theory Update for May 3: No changes in trends

posted on: May 3, 2013

Today’s Dow Theory commentary is being written some 45’ minutes before the close. As far as I can see in the charts, there are no changes of trends. Therefore, the primary and secondary trend for stocks remains bullish. As to gold and silver, GLD and SLV, the primary trend is bearish and the secondary trend […]

Dow Theory Special issue: Differences between trading and investment

posted on: May 3, 2013

Is trading so different from investment? For me, everything is the same. They are different ends that lead (or should lead) to the same goal. The goal is to protect your capital (avoid drawdons and paper losses as much as possible) and, if possible, make it grow. If you achieve this goal by day trading: […]

Dow Theory Update for May 2: SPY makes higher highs. Once again, Industrials and Transports refuse to confirm

posted on: May 2, 2013

Gold and silver up. Let’s see what the Dow Theory has in store for us in this blog today. Stocks The SPY, Industrials and Transports closed up. Once again, the SPY has made a higher high whereas the Industrials, and the Transports are unable to confirm. According to the Dow Theory, the longer the lack […]

Dow Theory Update: Stocks fail to make higher highs

posted on: May 1, 2013

Gold and silver down. Let’s get started with our Dow Theory commentary in this blog. Stocks The SPY, Industrials and Transports closed down. The higher high made by the SPY two and three days ago, remain unconfirmed, which suggests weakness and increases the odds for a secondary reaction, unless either the SPY or the Industrials […]

Dow Theory Update for April 30: SPY makes new unconfirmed higher highs

posted on: April 30, 2013

Gold stronger than silver Let’s get started with our Dow Theory commentary for today in this blog. Alternative explanation to GLD “pukes.” Here and hereyou can find two views on GLD inventory drain. According to them, nothing nasty is about to happen to GLD or paper gold. Since Bron Suchecki, who works at the Perth […]

Dow Theory Update for April 29: Gold and silver setting up for a primary bull market

posted on: April 29, 2013

SPY makes unconfirmed higher highs. Secondary trend of gold and silver turns bullish Today has been a day rich in Dow Theory events. We shall deal with them accordingly in this Dow Theory blog. Stocks The SPY, Industrials and Transports closed up. The SPY managed to make a higher high on a closing basis. However, […]

Dow Theory Update for April 26: Stocks meandering

posted on: April 26, 2013

GLD cannot stop puking Doug Short reports durable goods orders plunged in March Doug Short, a market analyst I respect, reported in Seeking Alpha that durable goods orders collapsed in March. He makes a conclusive case (supported by charts) that there is a strong correlation between durable goods orders and subsequent S&P performance. If past […]

Dow Theory Update for April 25: Gold retraces almost ½ of lost ground

posted on: April 25, 2013

Stocks closed up near highest highs Let’s get started with our Dow Theory commentary in this blog. Stocks The SPY, Industrials and Transports closed up. The primary and secondary trend remains bullish. Today’s volume was higher than yesterday’s, which is bullish and higher prices were supported by expanding volume. We have had 3 bullish […]

Dow Theory Update for April 24: Precious metals finally display some strength

posted on: April 24, 2013

Indecisive action in stocks Let’s see what the Dow Theory has in store for us today. Stocks Yesterday I was wondering whether under Dow Theory, we can declare the existence of a secondary reaction. After carefully studying the charts of the SPY, Industrials and Transports, I conclude that under strict Dow Theory, we cannot […]

Dow Theory Update for April 23: Stocks closed up but fail to better recent highs

posted on: April 23, 2013

Precious metals fail to reverse bearish trends Russell warns of excessive bullishness among investment advisors In his last two Dow Theory Letters, Richard Russell has warned that bullish advisers clearly outnumber bearish advisers. Normally, such excessive bullishness tends to beget at the very least a secondary reaction. However, as readers of this Dow Theory blog […]

Dow Theory Update for April 22: No change in trends in the markets

posted on: April 22, 2013

Stocks and precious metals up Today is going to be a short post in this Dow Theory blog. Stocks The SPY, Industrials and Transports closed up. The primary and secondary trend remains bullish. Today’s volume was lower than Friday’s, which has a bearish connotation. Gold and silver GLD and SLV closed up. Too soon to […]

Dow Theory Update for April 19: The moment of truth for stocks

posted on: April 19, 2013

Will the decline be arrested or a mere respite before the fall? It seems that all markets are testing the waters before either starting a new rally or resume declines. Under Dow Theory, there are no changes in trends. Stocks The SPY, Industrials, and Transports closed up. The primary and secondary trend remains bullish. Today’s […]