Category: Uncategorized

Dow Theory Update for May 7: Stocks close up on stronger volume

Gold and silver close down but remain above last minor recorded lows. US Stocks The SPY and Industrials closed up, and the SPY made a higher high (unconfirmed). The Transports closed down. The Industrials and Transports should confirm soon, so that I don’t begin to suspect that a secondary reaction is in the making. The […]

Dow Theory Update for April 4: Stocks fall out of bed on heavy volume

Precious metals arrest their decline. US Stocks The SPY, Industrials and Transports closed down. Volume was heavy and portrays a bearish picture. Here you have an updated chart displaying volume readings. As you can see red arrows (bearish volume days) dominate the landscape. Furthermore, today’ strong volume at a market top spell trouble for the […]

Dow Theory Update for March 11: Stocks nosedive (albeit trends remain unchanged)

Gold displays more strength than silver. Let’s get started with our Dow Theory commentary for today. US Stocks The SPY, Industrials and Transports closed down. The primary trend remains bullish, as explained here, and more in-depth here. The primary trend was reconfirmed as bullish on October 17th, 2013, and November 13th, 2013 and March 7th, […]

Dow Theory Update for October 23: Transports make higher highs unconfirmed

Russell remains bullish on gold Richard Russell of the “Dow Theory Letters” likes recent gold action. Let’s hope he has called the bottom. In the meantime, while I acknowledge that the secondary trend is bullish, under a strict Dow Theory viewpoint, I don’t see a primary bull market yet. US stocks The SPY, and Industrials […]

Dow Theory Update for September 11: Stocks remain strong

More Dorsey Wright on debunking buy and hold. Yesterday I quoted Dorsey Wright’s article debunking the myths of buy and hold. The article is so profound, and encapsulates in a short space so much wisdom, that it is worth quoting the closing paragraph of the article, which you can find here. “Every strategy, including buy […]

Dow Theory Update for July 23: Stocks take a breather

 And precious metals come to life (within the secondary bullish trend)   Excellent article on active versus passive investing The “Systematic Relative Strength” (Dorsey Wright) has published an enlightening article concerning factor investing (being “factor” different investment styles like momentum, value, volatility). The article makes two important claims: 1.   Factor investing (i.e. constructing a portfolio […]

Dow Theory Update for July 22: Secondary trend for gold and silver turns bullish

 Primary trend remains bearish, though. Eric Sprott and the physical gold market conundrum Eric Sprott has just published in Zero Hedge an in-depth analysis of the gold market, and the causes of its decline. Some of the conclusions read as follows:   “Given the strong physical demand, we think that this decline was engineered by […]

Dow Theory Update for July 1: Richard Russell smells a bottom in the gold and silver universe

Stocks close up Richards Russell thinks a bottom in precious metals likely Last Friday precious metals rebound off the lows did not go unnoticed to Richard Russell, of the Dow Theory Letters. He thinks that sentiment towards the metals is black bearish, which is usually the kind of sentiment found at market bottoms. I feel […]

SIL/GDX ratio at new highs

If you look at the chart below you will see that the SIL/GDX ratio is at new highs. The highs 05/01/2012 were broken out last Sept 27. This is clearly bullish long term (i.e. 1-2 years) for the silver miners and confirms silver’s relative strength. The trend of the ratio looks impressive. From this chart […]

Declines After Sell Signals with STI

Schannep Timing Indicator SELL Signals and the  further S&P500 Loss to the final Bear Market Lows*: (Data since 12/31/1953)           Sell Date Level Low Date: level   further loss: months to low: 8/20/1956 48.25 10/22/1957 38.98   19.2%   14.1 11/12/1959 57.17 10/25/1960 52.30 * 8.5%   11.5 5/10/1962 63.57 6/26/1962 52.32 […]

THE NEWSLETTER

Why does Marketiming matter?  Is an old system still relevant?  Mark Hulbert from Marketwatch wrote an interesting article that market-timing is academically proven to increase investment results.  You can read it here. Combining the time-tested principles of Charles Dow’s Traditional Dow Theory with the 55-year+ years of research of Jack Schannep, The Schannep Timing Indicator & TheDowTheory.com […]

Deja Vu- II