Category: Insights

Dow Theory Update for Dec 10: No change of trends under the Dow Theory

posted on: December 10, 2012

Mildly bullish day Before I start with our Dow Theory commentary, you may be may be interested in reading my post in this blog entitled “Don’t fall in love with your stocks! Love is always dangerous” which you can find here. Today was a mildly bullish day. The SPY barely nudged up. The Industrials […]

Don’t fall in love with your stocks! Love is always dangerous

posted on: December 10, 2012

How to develop confidence in the Dow Theory Today I read two good posts that highlight the importance of not falling in love with your stocks. In the “Systematic Relative Strength” blog, there is an interesting post concerning the risk of loving one stock. Please click here. In the “Big Picture” blog, there is another […]

Dow Theory Update for Dec 7: Stocks and precious metals up

posted on: December 7, 2012

No changes in trends. What are other Dow Theorists saying? Richard Russell, of the Dow Theory Letters fame, is mixed (as far as I can conclude). He says that as long as the 11/15/2012 lows are not violated there is hope for the bulls. However, until the October highs are not broken out, he will […]

Dow Theory Update for Dec 6: Stocks mildly up. No changes in trends

posted on: December 6, 2012

Gold and silver barely up. Let’s begin with our analysis of the markets under the Dow Theory. The SPY and the Industrials closed up. The Transports barely down. Volume was lower than yesterday’s and given that the SPY closed up today, it has a bearish connotation, as the upward move was not supported by volume. […]

Why I like timing? Why I love the Dow Theory as a capital protector?

posted on: December 5, 2012

When the stock market runs smoothly as it did in the 80s and 90s there seems to be little need for any timing device. Be it the Dow Theory or a moving average. However, when the cake is shrinking or not growing, or, simply, the market decides that it is time for lower multiples and […]

Dow Theory Update for Dec 5: Stocks up. No change in trends

posted on: December 5, 2012

Gold and silver modestly down. Let’s see what the Dow Theory has in store for us today. The SPY, Industrials and Transports closed up today. The primary trend remains bearish, the secondary one bullish. Volume was higher than yesterday’s. Being an up day, it has a bullish connotation. In the last 6 days we have […]

Dow Theory special issue: Dissecting the current secondary reaction in the stock market

posted on: December 4, 2012

A secondary reaction within a primary bear market As I promised in my yesterday’s post in this Dow Theory blog, I will provide you with additional information as to the ongoing secondary reaction. As a recap, we know that the Dow Theory signaled a primary bear market on Nov 16. You have the details […]

Dow Theory Update for Dec 4: Stocks down. No changes in trends

posted on: December 4, 2012

Gold and silver down. Let’s get started with our Dow Theory commentary for today in this blog. The SPY and Industrials closed down today. The Transports closed up. Technically, nothing has been accomplished. The primary trend remains bearish, and the secondary trend remains bullish. Volume was higher than yesterday’s, since the SPY closed down, […]

Dow Theory Update for Dec 3: Stocks under secondary reaction

posted on: December 3, 2012

Stocks down. Gold and silver up. Let’s analyze the markets under the prism of the Dow Theory. The SPY, the Industrials and the Transports closed down today. The secondary trend has turned bullish, which means that the current rally now qualifies as a secondary reaction against the primary bearish trend. Since the lows of 11/15/2012 […]

Dow Theory Update for Nov 30: No change in trends

posted on: November 30, 2012

Bearish bias Today is going to be a short post in this Dow Theory blog. The Industrials closed up. The Transports and SPY closed down. The primary trend and secondary remain bearish. Volume was very high. Since overall it was a down day, it was, again, a bearish volume day. Volume continues bearish and is […]

Dow Theory Update for Nov 29: No changes in trends.

posted on: November 29, 2012

Stocks and precious metals up. Let’s see what the Dow Theory has in store for us today. Yesterday I finished my post on this Dow Theory blog by promising information about SIL and GDX. Should we raise our stops? The full answer at the bottom of this post. Stocks closed up today. There was unanimity. […]

Dow Theory Update for Nov 28: Exit points changed for GLD and SLV. Profits likely to be locked in

posted on: November 28, 2012

No change in trends. Today, there are important changes that affect both GLD and SLV. Read intently the end of this post on this Dow Theory blog. Stocks closed up today. Technically, under Dow Theory, both the primary trend and secondary trend remain bearish. Volume was mildly bullish, as it was higher than yesterday’s in […]