Dow Theory Update for May 14: Stocks make higher highs

 Gold and silver at crossroads

Stocks

The SPY, Industrials and Transports made higher highs (see chart below). Such higher highs re-confirm the primary bull market in stocks. The primary and secondary trend remains bullish.

Be it QE, be it inflation ahead, be it who knows what...higher highs confirm the primary bull market

Today’s volume was higher than yesterday’s, which makes it a bullish volume day. The overall pattern of volume is neutral.

Gold and Silver

GLD and SLV closed down. Accordingly, the pullback whose study was made in this Dow Theory blog here continues. This further clarifies the existence of the setup for either a primary bull market or a re-confirmation of the primary bear market. Gold and silver are at crossroads now. Either they break above the secondary reaction highs thereby flashing a primary bull market signal, or violate the 04/15/2013 lows, thereby re-confirming the primary bear market. It is a really interesting technical formation.

In the meantime, the primary trend is bearish and the secondary trend is bullish.

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

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

 

Data for May 14, 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		05/14/2013	165.23
Current stop level: Bear mkt low			135.7
Unrlzd gain %	Tot advance since start bull mkt	Max Pot Loss %
13.12%	21.76%	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