Category: Insights

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 […]

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 […]