Category: Insights

Dow Theory special issue: Gold and silver miners ETF secondary reaction

posted on: October 24, 2012

Are we sure? In my Dow Theory Update of October 23, I announced that the Dow Theory had signaled a secondary reaction in the gold and silver miners ETFs. Here you have a chart showing recent price action (until Oct 23) Caught within a line The red line is the SIL/GDX ratio which, as you […]

Dow Theory Update for Oct 23: Gold and silver miners enter secondary reaction.

posted on: October 23, 2012

Markets down. Transports up. Let’s begin with our Dow Theory commentary in this blog. The SPY and Industrials closed clearly down. However, the Transports defying gravity force managed to close up for the day. So the secondary reaction follows its course. It is good to remember that the amount hitherto corrected is modest if we […]

Dow Theory Update for Oct 22: No changes in trends.

posted on: October 22, 2012

Primary trend bullish and secondary trend bearish in stocks and precious metals. Let’s get started with our Dow Theory analysis for today in this blog. The Industrials and the SPY closed minimally up today. The Transports taking a breather closed down today. Technically, nothing has changed. We know that trends are made by sheer […]

A primer on secondary reactions under Dow Theory

posted on: October 20, 2012

My detailed answer to a comment left by bstart. Bstart, an attentive reader of this blog, left an interesting comment which you can find here: I quote bstart: “Based on your notes and chart of DJT of http://www.dowtheoryinvestment.com/2012/09/dow-theory-update-for-sept-13-new.html I interpret the SLV behavior differently. Is the following analysis right? 1. 5/16/12 – 26.37 SLV low […]

Special Dow Theory issue: Revisiting the 1987 crash

posted on: October 19, 2012

The Dow Theory saved its followers. As I promised earlier today, here are my two cents on the October 19, 1987 crash. So, how fared those that followed the Dow Theory? Were they spared? The answer if a clear: YES. They were spared. In this study, I will use “classical” Dow Theory with just the […]

Dow Theory Update for Oct 19: Happy anniversary 25 years of the 1987 Crash

posted on: October 19, 2012

Markets celebrate black Monday by mostly going down. Gold and silver: secondary trend turns bearish. Later today or early tomorrow I will post in this Dow Theory blog a special issue on the 1987 stock market crash. Would the Dow Theory have kept us safe on October 19, 1987? I’ll give you the answer in […]

Dow Theory Update for Oct 18: Transports still stronger.

posted on: October 18, 2012

No changes in trends. Let’s get started with our Dow Theory analysis for today in this blog. Our headline today is again the Transports. Whilst the SPY and the Industrials closed lower today, the Transports displaying greater relative strength managed to edge higher for the day. It has had an up close 5 days in […]

Dow Theory Update for Oct 17: Primary trend for stocks bullish. Secondary trend still bearish

posted on: October 17, 2012

Primary and secondary trend bullish in the precious metals universe. Richard Russell, of the „Dow Theory Letters“, seems to little by little join the bullish camp, albeit in a hedged manner. In his yesterday’s letter, he acknowledged that the bull seems to be winning the battle. As I wrote in the past in this […]

Dow Theory update for Oct 16: Bullish day. No changes in trends

posted on: October 16, 2012

No secondary reaction in the precious metals’ universe yet. Not all days are relevant under Dow Theory. Today this post in this Dow Theory blog is going to be short, since today in spite of the bullish display of the markets, is an inconsequential day. I will spare my letters and words. The three stock […]

Jim Rogers and the Dow Theory

posted on: October 16, 2012

Do they have something in common? Today Seeking Alpha published an interesting article named “Jim Rogers: The U.S. Faces Several ‘Lost Decades’” which you can read here If Rogers is to be proven right, the implications are really scary. Not only as investors but also concerning our day-to-day life. The comments to the article were […]

Dow Theory update for Oct 15: No secondary reaction in gold and silver…yet

posted on: October 15, 2012

Stocks up today. No changes under Dow Theory. Let’s get started with our Dow Theory analysis for today in this blog. The three stock indices we monitor, namely the SPY, Industrials and Transports all closed up for the day. Technically, nothing has changed: the primary trend remains bullish and the secondary trend remains bearish. The […]

Dow Theory special issue: More on the secondary reaction and its implications. II

posted on: October 12, 2012

Should I buy specific stocks or the indices? Continued from this post: http://www.dowtheoryinvestment.com/2012/10/dow-theory-special-issue-more-on.html I closed yesterday’s post in this Dow Theory blog by asking whether one should just buy an index (i.e. IYT, DIA or SPY) or the existence of a primary bull market warrants the acquisition of specific stocks. This is a tough question. […]