Dow Theory Update for April 17: Stocks close down

Gold and silver stabilizing?

On the importance of sticking to the trend

The “Trendfollowing trader” makes clear in one graph why the investor should stick with the trend, and he proves that the adage “sell in May and go away” would have been devastating to investors on the long run.

Stocks

The SPY, Industrials and Transports closed down. The primary and secondary trend remains bullish.

Today’s volume was higher than yesterdays, which has a bearish connotation as declining prices were joined by expanding volume.

Gold and Silver

GLD pukes inventory like if there was no tomorrow. Either the mainstream is right and GLD is merely reflecting gold’s weakness or demand for allocated gold overwhelms available physical supply.

GLD closed up, and SLV closed down. The primary and secondary trend is bearish.

GDX and SIL, the gold and silver miners ETFs, closed down. The primary and secondary trend is bearish.

Here you have the figures of the markets I monitor for today:

 

Data for April 17, 2013
DOW THEORY PRIMARY TREND MONITOR SPY
			SPY
Bull market started		11/15/2012	135.7
Bull market signaled		01/02/2013	146.06
Last close		04/17/2013	155.11
Current stop level: Bear mkt low			135.7
Unrlzd gain %	Tot advance since start bull mkt	Max Pot Loss %
6.20%	14.30%	7.63%
DOW THEORY PRIMARY TREND MONITOR GOLD (GLD)
			GLD
Bull market started		05/16/2012	149.46
Bull market signaled		08/22/2012	160.54
Exit December 20		12/20/2012	161.16
Current stop level: Sec React low		11/02/2012	162.6
Realized Loss %	Tot advance since start bull mkt
0.39%	7.83%
DOW THEORY PRIMARY TREND MONITOR SILVER (SLV)
			SLV
Bull market started		06/28/2012	25.63
Bull market signaled		08/22/2012	28.92
Exit December 20		12/20/2012	29
Current stop level: Sec React low		11/02/2012	29.95
Realized gain %	Tot advance since start bull mkt
0.28%	13.15%
DOW THEORY PRIMARY TREND MONITOR ETF SIL
			SIL
Bull market started		07/24/2012	17.08
Bull market signaled		09/04/2012	21.83
Exit January 23		01/24/2013	21.69
Current stop level: Sec React low		11/15/2012	21.87
Realized Loss %	Tot advance since start bull mkt	Max Pot Loss %
-0.64%	26.99%	27.81%
DOW THEORY PRIMARY TREND MONITOR ETF GDX
			GDX
Bull market started		05/16/2012	39.56
Bull market signaled		09/04/2012	47.77
Exit January 23		01/24/2013	44.56
Current stop level: Sec React low		12/05/2012	45.35
Realized Loss %	Tot advance since start bull mkt	Max Pot Loss %
-6.72%	12.64%	20.75%

Sincerely,

The Dow Theorist