Gold and Silver on the verge of breaking out prior highs
Today all markets I monitor closed up. What else can I say? The primary bull market remains intact and the long awaited secondary correction (which would be a good opportunity for latecomers to be long stocks and precious metals as you can read here) fails to gain traction.
Primary bull markets normally die of old age and ours is still a young one (started on June 4 and was signaled by the Dow Theory on June 29). If you are new to this blog, you can find more details as to the primary bull market signal for stocks here
Market action has been quite impressive since all the stock indices I monitor as well as gold, silver and their miners closed up. Such breath is usually a bullish sign.
The only bearish shadow on this bullish landscape was volume. NYSE volume was today lower. Since today was an up day, this has bearish implications short term. Hence, we have had 3 bearish volume days in the last 5 days. We should not forget that last Friday’s was a monster volume day, thereby having more bearish importance. So the patter of volume continues to deteriorate short term. Here you have an updated chart of the SPY and volume. The red arrows depict a bearish volume day and the blue arrows a bullish volume day.
|As per Dow Theory volume is slightly becoming bearish short term|
The precious metals universe closed up for the day. No exceptions. Also a bullish sign short term. Gold and silver are within striking distance of breaking above the highs registered on 09/21/2012. If this happens, under Dow Theory, it clearly confirms the continuation of the primary bull market that was first signaled on August 22.
All in all: Latecomers should still stay in the sidelines until the markets give us a decent secondary reaction.
Here you have the figures of the markets I monitor for today:
The Dow Theorist