Dow Theory Update for August 1: Stocks make confirmed higher highs

 Primary bull market for stocks re-confirmed

Stocks

The SPY, Industrials and the Transports closed up. The three indices we monitor bettered the most recent recorded closing highs, and accordingly the primary bull market has been re-confirmed. Here you have the chart that says it all:

Primary bull market re-confirmed today

 

The primary and secondary trend is bullish, as explained here, and more in-depth here.

Today’s volume was mixed. On the one hand, we had a bullish pivot, namely, that today’s volume exceeded the volume registered at the preceding closing high. This tends to be a bullish sing. On the other hand, today’s volume was lower than yesterday’s, which has a bearish connotation. I ascribe, though, more value to pivots than to the day-to-day readings of volume. Bearing all this in mind, I’d label the pattern of volume as neutral.

Here you have an updated chart displaying volume readings and price action:

Volume is neutral

 

Gold and Silver

SLV  and GLD closed down. The primary trend is bearish, as explained here and reconfirmed bearish here. The secondary trend is bullish (secondary reaction against the primary bearish trend), as explained here.

GDX and SIL, the gold and silver miners ETFs closed down

The primary trend is bearish, as explained here and reconfirmed bearish here.

The secondary trend for GDX and SIL is bullish, as explained here.

Here you have the figures for the SPY, which represents the only market with a suggested open long position.

 

Data for August 1, 2013
DOW THEORY PRIMARY TREND MONITOR SPY
			SPY
Bull market started		06/24/2013	157.06
Bull market signaled		07/18/2013	168.87
Last close		08/01/2013	170.66
Current stop level: Bear mkt low			157.06
Unrlzd gain %	Tot advance since start bull mkt	Max Pot Loss %
1.06%	8.66%	7.52%

Sincerely,

The Dow Theorist