Category: Insights

Plain vanilla Dow Theory? Or does Dow Theory come in many flavors? II

posted on: September 19, 2012

Part II. Richard Russell and his Dow Theory Letters. Continued from this post http://www.dowtheoryinvestment.com/2012/09/plain-vanilla-dow-theory-or-does-dow.html Russell is a living legend. He is greatly influenced by Schaefer but, in my opinion, Russell is more pragmatic and, without meaning disrespect for Schaefer, a more rounded up Dow Theorist and investor. If you read Schaefer’s book you’ll see that, […]

StockCharts.com and Schannep’s “thedowtheory.com”: Two good sources for information about the Dow Theory

posted on: September 18, 2012

For those interested in learning more about the Dow Theory, the following sources may be useful. StockCharts.com has a good introduction to the Dow Theory which you can find here: http://stockcharts.com/help/doku.php?id=chart_school:market_analysis:dow_theory From the different “free” sources for Dow Theory in the internet, this is the only one which I think is “orthodox” enough to be […]

Dow Theory update for Sep 18: No news. Both primary and secondary movements remain bullish.

posted on: September 18, 2012

Long term bonds: Still not ready to collapse. The good thing of applying Dow Theory to analyze the markets is that it is sufficiently long term to allow you not to be glued to the screen all day long, while, on the other hand, it is nifty enough, to get you out soon when trouble […]

Dow Theory update for Sep 17: Zzzz!!!

posted on: September 17, 2012

Today was another irrelevant day from a Dow Theory standpoint, so I’ll try to keep this post short. All the markets we monitor went down. However, one day down signifies nothing under Dow Theory. Therefore, both the primary trend and the secondary one remain bullish. As you know from other posts in this blog, I’m […]

Dow Theory spells trouble for bonds: Clouds on the horizon

posted on: September 17, 2012

We have been talking in this blog about stocks, gold, silver and their miners. However, we kept silent as to the US treasury bonds. First of all, I must admit that bonds are not so easy to be analyzed under Dow Theory. Dow Theory works best when applied to correlated markets (i.e. SPY and Transports) […]

Plain vanilla Dow Theory? Or does Dow Theory come in many flavors?

posted on: September 15, 2012

Part I. From Charles Dow to Richard Russell Before this blog continues growing, I feel a clarification is in order. I constantly allude to the Dow Theory as if it were a given. However, in the last 110 years substantially different investment and even trading styles have been advocated under the label “Dow Theory”. Is […]

Is really gold glittering? Who benefited most from QE?

posted on: September 14, 2012

In spite of the breathtaking rally we have recently witnessed in gold, in spite of the primary bull market that was signaled in gold on August 22 by the Dow Theory (*) which has been commented ad nauseam in this blog, in spite of QE, there remains a nagging question: Is really gold so strong? […]

Dow Theory update for Sept 14. New market highs confirm again primary bull market

posted on: September 14, 2012

Today is one of this days when there are no news under Dow Theory. The three stock indices I monitor (Industrials, S&P and Transports) all closed up, thereby making new absolute highs since the primary bull market got started on June 4, 2012 (signaled by the Dow Theory on June 29). For more details […]

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 […]