Category: Insights

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 […]

Dow Theory Update for March 28: Higher high made by the Industrials not confirmed

posted on: March 28, 2013

Is a secondary reaction developing? Stocks The SPY, Industrials, and Transports closed up. The Industrials made a higher high unconfirmed by other indices. The longer the non confirmation persists, the higher the odds of a change of the secondary trend (secondary reaction). The primary and secondary trend remains bullish. Today’s volume was higher than yesterday’s, […]

Dow Theory Update for March 27: Precious metals seems to awake

posted on: March 27, 2013

Stocks meandering Zero Hedge highlights bearish volume In a post entitled “Autopsy of a Death Market”, Zero Hedge made clear today that volume in the last few days has been ominously bearish. We have taken a similar stand in this Dow Theory blog. Stocks The SPY closed unchanged. The Transports closed up, but failed to […]

Dow Theory Update for March 26: Industrials make higher highs unconfirmed

posted on: March 26, 2013

Precious metals: The moment of truth is near Let’s get started with our Dow Theory commentary for today in this blog. Will a correction be averted? The “Big Picture” blog contains an interesting article that shows that too many writers (yours truly included) expect a secondary reaction and, thus, this shows that the selling has […]

Dow Theory Update for March 25: Distribution days pile up

posted on: March 25, 2013

Precious metals: Still weak. Let’s see what the Dow Theory has in store for us today. Stocks The SPY, Industrials and Transports closed down. While I believe that we are already under a secondary reaction, according to the Dow Theory it is too early to tell. We need at least a pullback exceeding 3% in […]

Dow Theory Update for March 22: Stocks up but fail to make higher highs

posted on: March 22, 2013

GLD leaking gold again Let’s begin our Dow Theory commentary for today. Stocks The SPY, Industrials and Transports closed up. The primary and secondary trend remains bullish. However, I note that the 03/14/2013 highs have not been bettered. Today’s volume was lower than yesterday, which makes it a bearish volume day, as higher prices were […]

Dow Theory Update for March 21: Gold and silver awakening

posted on: March 21, 2013

Stocks down Let’s get started with our Dow Theory commentary in this blog for today. An interesting article in The Reformed Broker Some days ago, The Reformed Broker posted an interesting article differentiating between “good” and “bad” new highs. It suggests that the news highs recently made are “good ones” and will hold. […]

Dow Theory Update for March 20: Stocks mostly up

posted on: March 20, 2013

All trends unchanged GLD grew in tonnage yesterday. At last, GLD gained inventory yesterday. Since February 7, 2013 GLD had not recorded one single day with inventory gains. Has the bleeding been arrested? Too soon to tell. According to “The Reformed Broker” the odds favor a continuation of the current bull market in stocks The […]

Dow Theory Update for March 19: In spite of all noise no change in trends

posted on: March 19, 2013

Gold again up. Silver does not confirm. Special note on GLD GLD puked yesterday 13.55 tonnes or 1.09%, which is a massive “puke.” That such a puke occurs within a day when gold was clearly up is even more bullish as it denotes that higher prices don’t quench the thirst for physical gold (which can […]