Nonetheless, primary trend remains bullish
Today the S&P, Industrials
and Transports all closed up. So it seems that the secondary reaction fails to
materialize. However, I’m starting to discern a pattern that under Dow Theory
has significance. The Industrials and the SPY seem to be forming a “line”. Later
today or early tomorrow I will write more about “lines” and what they mean to
the investor. I don’t want to rush now and make a bad job.
Volume was bullish today,
since it was an up day on higher volume.
The BLV/GLD (long term
bond/gold) ratio continues at a dangerous juncture but hasn’t displayed a bear
signal yet (which would be bearish for bonds and bullish for gold).
Both gold and silver closed up
for the day very near their recent lows. However, SIL and GDX (their miners
ETFs) closed lower. Are the miners suggesting that the bull run in gold and
silver is going to pause or even enter into a secondary reaction? We will see. The significant lows to be broken in order to
start to see some short term bearishness in the miners are those of 09/26/2012.
I’ll keep an eye on them closely.
Later I will post the figures
for today and my analysis of the “line” I see in the making and its repercussions
for investors.
Bottom line: The primary trend is solidly established. It is boring to be an investor along the primary trend. No actions; big gains.
Have a nice evening.
Sincerely,
The Dow Theorist
No comments:
Post a Comment