Category: Insights

Can Dow Theory be applied to short term trading as a filter?

posted on: September 13, 2012

While I plan to develop this idea in further posts, the answer is yes. The primary trend of the market as determined by the Dow Theory is so powerful that it is a very good filter to apply to other trading strategies. Hence, even though a trader might think that a trade lasting 1 week […]

Dow Theory update for Sept 13. New market highs confirm again primary bull market.

posted on: September 13, 2012

Transports finally confirm under Dow Theory. The good thing of the Dow Theory is that it doesn’t provide us with “news” every day. However, today is one of those rare days that are vital to understand future market action. Today is an important day. The three stock indices I follow under Dow Theory: The Industrial, […]

Dow Theory update for Sept 12. S&P, Gold and Silver: Both primary and secondary movement bullish

posted on: September 12, 2012

Today, again the three stock indices I monitor under Dow Theory closed up for the day. The Industrials and the SPY made higher highs. Actually we are at the highest point for both indices since the inception of this primary bull market on June 4 (signaled by the Dow Theory on June 29). The transports […]

What should I do if I missed the Dow Theory bull signals for the SPY and GLD? Dow Theory’s second chance: The first secondary reaction.

posted on: September 11, 2012

In my yesterday’s post which you can find here I have made clear that under Dow Theory both the SPY and GLD are in a primary bull market. Furthermore, I explained that both markets offered the best risk reward ratio (RRR). In other words, the stop losses are sufficiently close to the entry points (June […]

Dow Theory update for Sept 11. S&P, Gold and Silver: Both primary and secondary movement bullish.

posted on: September 11, 2012

The breather the market took yesterday was short lived. Today the S&P and all the precious metals universe I monitor were up for the day. However, as per Dow Theory we should disregard the daily movement. Yesterdays down move didn’t make me jittery and today’s up move doesn’t make me jump at all. From a […]

Technical pro L.A. Little sees the S&P higher

posted on: September 11, 2012

Among the see of bearishness that engulfs us, here you can find a very good technical analysis of the current situation of the stock market. Market Watch contributor L.A. Little does a wonderful job in explaining us why the S&P bull market is likely to continue. Whilst the analysis is not based on Dow Theory, […]

Dow Theory update for Sept 10. S&P, Gold and Silver: Both primary and secondary movement bullish.

posted on: September 10, 2012

Today it was time to take a breather. The stock market and the precious metals universe (including miners) went all down. What has the Dow Theory in store for us today? Not much. According to Dow Theory no technical damage has been made. Thus, the primary trend remains bullish as well as the secondary movement. […]

Why Dow Theory matters: Outstanding Risk Reward Ratio thanks to the Dow Theory’s trailing stop.

posted on: September 10, 2012

Today we have an important money making (or rather money “saving”) post. Please mind that I am writing this before the open with the closing prices of Friday, September 7. In the last Saturday’s post “The price of not heeding the Dow Theory: From 06/29/2012 to date 5.8%” (click here), I insisted that the odds […]

Does he follow Dow Theory? Legendary James Dines says bull market in gold since August 22

posted on: September 8, 2012

James Dines is a legend that is not to be taken lightly. In this interview given to “King World News” he says that on August 22nd it became clear that gold and silver were “ready to resume its super major bull market“. He explains that there is going to be a big move. I don’t […]

The price of not heeding the Dow Theory: 6.05% from 06/29/2012 to date

posted on: September 8, 2012

I frequently visit “The Big Picture” to be updated on financial matters. It is a wonderful website. Yesterday I found this post entitled “Sell Side Indicator” which you can find here The gist of the post is a chart that shows the extreme bearishness of asset managers and analysts. In other words, since the Dow […]

Dow Theory market update for Sept 7, 2012: No changes. Both primary and secondary movement bullish.

posted on: September 7, 2012

Well, nothing has changed since my last post. The Dow Theory primary bull market signals we detected in the precious metals, the precious metals miners (ETFs) and, more importantly, the stock market remain fully in force. Both the primary and the secondary trend remain bullish under the Dow Theory An image is more worth than […]

Dow Theory update: New Market highs confirm primary bull movement.

posted on: September 6, 2012

In my yesterday’s post “Dow Theory signals a new primary bullmarket in gold and silver miners” I said that the markets seemed to be “smelling” more liquidity coming. Thus, I wrote: The market is clearly telling us that the tide was turning already by the end of June in favor of more liquidity And In […]