Category: Insights

Dow Theory special issue: Random thoughts about gold and silver

posted on: April 15, 2013

Lessons learned and probable outcomes Gold and silver precipitous fall has taught us (or better said re-taught) some valuable lessons. Technical action was right on the spot whereas fundamental-based readings of the precious metals markets have been proven wrong. If you have been following this Dow Theory blog for some time you will remember than […]

Dow Theory Update for April 15: Markets meltdown

posted on: April 15, 2013

Later today special issue on gold Zero Hedge sees a correction coming Zero Hedgehas noted that, of late, credit markets seems to be a good predictor of stock market activity. In other words, when credit markets swoon, stocks tend to follow suit. Recent action (declines and shares redeemed) in JNK ETF seems to suggest that […]

Dow Theory Update for April 12: Gold and silver fall out of bed. Primary bear market reconfirmed

posted on: April 13, 2013

GLD losses massive 22.86 tonnes Volume is bearish on a long-time perspective. Danielle Park has posted an interesting article in her blog “Juggling Dynamite.” According to Park, volume has been extremely bearish from a long time perspective. The post contains two sobering charts. Stocks The SPY, Industrials and Transports closed down. The primary and […]

Dow Theory Update for April 11: Stocks make higher highs

posted on: April 11, 2013

Transports fail to join the bullish parade Zero Hedge sees a correction coming Zero Hedgehas noted that, of late, credit markets seem to be a good predictor of stock market activity. In other words, when credit markets swoon, stocks tend to follow suit. Recent action (declines and shares redeemed) in JNK ETF seems to suggest […]

Dow Theory Update for April 10: Stocks make higher highs

posted on: April 10, 2013

No changes in trends The GLD inventory conundrum solved? Read Fofoa’s latest post It is no secret that when it comes to “fundamentals” about gold, I am an ardent follower of FOFOA. While this is a technical, Dow Theory blog, I know deep in my heart that when it comes to investing for the very […]

Dow Theory Update for April 9: Industrials make higher highs unconfirmed

posted on: April 9, 2013

Precious metals strong but no change in trends The value trap Dorsey Wright’s blog “Systematic Relative Strength” has recently published an interesting article concerning blind value investing, namely buying stocks because they look cheap. The main thesis is that stocks, unlike staples or commodities, don’t have a predetermined value or utility und, thus, what works […]

Dow Theory Update for April 8: Stocks close up but fail to make higher highs

posted on: April 8, 2013

Precious metals meandering Finally, I have been able to post today my Dow Theory Commentary, albeit a short one. Stocks The SPY, Industrials and Transports closed up. However, neither index managed to better the last recorded closing highs (04/02/2013). Today’s volume was notoriously lower than yesterday’s, which make it, once again, a bearish volume day. […]

Dow Theory Update for April 5: Gold and silver up once again

posted on: April 5, 2013

Stocks weak in spite of closing rally Let’s get started with our Dow Theory commentary in this blog. Bill Gross teaches us to be humble Bill Gross, of PIMCO fame, in his article “A man in the mirror”, has made an exercise in humility. He concedes that most applauded gurus have enormously benefited by unusual […]

Dow Theory Update for April 4: Stocks rebound on bearish volume

posted on: April 4, 2013

Trends remain unchanged Jon Strebler and the Dow Theory Letters As I reported here Jon Strebler joined forces with Richard Russell, of the Dow Theory Letters some weeks ago. My preliminary take on him (positive) has been confirmed as new “Dow Theory Letters” get published. I like Strebler’s humble and no-nonsense approach. His latest message […]

Dow Theory Update for April 3: Meltdown day or precious metals capitulation?

posted on: April 3, 2013

Stocks and precious metals in free fall Let’s get started with our Dow Theory commentary in a day full of Dow Theory relevant events. Stocks The SPY, Industrials and Transports closed down. The primary and secondary trend remains bullish under Dow Theory. Here you have an updated chart showing volume relevant events: Volume continues […]

Dow Theory Update for April 2: SPY and Industrials “in the clear”

posted on: April 2, 2013

Primary bear market re-confirmed in GDX and SIL Investment fraternity bearish on stocks Barry Ritholtz blog “The Big Picture” reports that the so-called “sell side indicator” is extremely bearish, meaning that most investment professionals have a bearish outlook for stocks. Normally, extreme readings tend to have “contrarian” outcomes. Thus, in the present instance, pervasive bearishness […]

Dow Theory Update for April 1: Silver makes lower lows unconfirmed by gold

posted on: April 1, 2013

Stocks weak “Least loved bull market in modern history.” The systematic relative strength blog quoting USA Today reminds us that the current bull market is the least loved bull market in modern history. Here you have the details. If we take a contrarian view, this implies that it is still far from topping. From a […]