Category: Insights

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 […]

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 […]