Category: Insights

Dow Theory update for Sept 24: Not even a secondary reaction…yet

posted on: September 24, 2012

Today has been a mildly down day. Both the SPY and the Industrials closed down. The Transports, again diverging, closed slightly up for the day. Since Sept 14 the stock market has been unable to make new highs. However, the decline experienced until now is so mild that even the last minor recorded lows (they […]

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

posted on: September 22, 2012

Part III. Jack Schannep and “The Dow Theory.com Newsletter” Continued from this post: http://www.dowtheoryinvestment.com/2012/09/plain-vanilla-dow-theory-or-does-dow_19.html And the latest addition to the “Dow Theory’s Hall of Fame” is Jack Schannep. He started in the ninety sixties as a stock broker with Dean Witter in Phoenix. In 1962 he created a market timing letter which was almost privately […]

Dow Theory update for Sept 21: Transports give a warning

posted on: September 21, 2012

However, both primary and secondary movement remain bullish As to the stock market, the Industrials, SPY and the Transports, all finished down for the day. Technically, the SPY and Industrials keep being very close to their last recorded highs, so nothing has changed. The Transports violated today the last significant low (which was the lows […]

Dow Theory update for Sept 20: Bull market continues

posted on: September 20, 2012

Today was another day without changes. Both the primary and secondary trend of the markets we monitor, namely, S&P, Industrials, Transports, Gold, Silver and their respective ETF miners continues unchanged. The Industrials closed slightly higher establishing a new record high since the inception of the primary bull market on June 4 (signaled by the Dow […]

Dow Theory update for Sept 19: Bullish trends intact

posted on: September 19, 2012

Today has been another day with negligible movements. All the three indices (Transports, Industrials and S&P) we monitor under Dow Theory closed slightly up for the day. All of them are under the 09/14/2012 highs. Volume has slightly higher than yesterday’s (which was a mildly down day), so the bullish pattern of volume continues. Gold […]

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? […]