Category: Insights

Dow Theory Update for Oct 31: SIL displaying strength

posted on: October 31, 2012

No changes in trends. No big news today, so this Dow Theory commentary on this blog will be brief. The SPY closed unchanged, and the Industrials were slightly down. Transports, again displaying more relative strength closed up. Technically, nothing has changed. The primary trend remains bullish, and the secondary trend remains bearish. It has […]

No Dow Theory Update for Oct 29 and 30: Markets Closed

posted on: October 29, 2012

Due to hurricane, markets have been closed today Monday and it seems they will be closed tomorrow. So no Dow Theory update in this blog today and tomorrow. Let’s hope damages will be contained. Sincerely, The Dow Theorist.

Dow Theory Update for Oct 26: No changes in trends.

posted on: October 26, 2012

All primary trends remain bullish There is not much to say in this Dow Theory analysis for today. The Industrials and Transports closed up. The SPY was mildly down. Technically, nothing has been changed. The primary trend remains bullish and the secondary one bearish. Since the SPY has much larger capitalization than the Industrials and […]

Dow Theory spells trouble for bonds: Clouds on the horizon. Part II

posted on: October 25, 2012

Yesterday, in this Dow Theory blog, I promised you that I’d talk about the BLV/GLD ratio. Here we go. Let’s begin with an old post called “Dow Theory spells trouble for bonds: Clouds on the horizon” which you can read here Go to that post and look at the BLV/GLD chart that is displayed […]

Dow Theory Update for Oct 25: No changes.

posted on: October 25, 2012

Today was a technically dull day. Let’s get started with our Dow Theory analysis for today. Stocks were up. Technically, nothing significant occurred. It seems as stocks are trying to bottom, but it is too early too tell and we are unconcerned since we do not trade secondary reactions but, as I always say, we […]

Dow Theory Update for Oct 24: Bearish day

posted on: October 24, 2012

Stocks: Primary trend remains bullish. Secondary trend bearish. Let’s get started with our Dow Theory analysis for today. Today this post in this blog is going to be short, since I just posted some time ago an in-depth study as to whether the gold and silver miners ETFs are experiencing a secondary reaction. You can […]

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 […]