Stocks close down
More in-depth analysis of the Dow Theory
Later today, I will post the next issue of the saga
"Face off: Schannep versus "classical" Dow Theory", whose
first part can be found here.
Zero Hedge sheds some light on the physical gold
situation.
Here you can find an interesting article concerning physical
gold and the lack thereof.
As with any “fundamental” analysis, it is to be taken
with a grain of salt or two. More specifically;
a) Don’t
forget that fundamentally based scenarios take time to play out.
b) Not
all gold was created equal, as was explained here.
Stocks
The SPY,
Industrials and Transports closed down.
Today’s
volume was lower than yesterday’s. Since stocks closed down, contracting volume
has a bullish connotation. For the reasons I gave yesterday, I’d say that volume is turning bullish. We have had three
consecutive bullish volume days, and the last breakup of 08/01 was a bullish
pivot, as was explained here.
Gold and
Silver
SLV and GLD closed
up. 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.
SIL and GDX,
the gold and silver miners ETFs, closed up. SIL and GDX are nearing the
critical secondary reaction highs (blue rectangle and blue horizontal lines).
If prices broke up above the blue horizontal lines, a primary bull market
signal would be flashed by the Dow Theory. That would be the first really
positive technical development in many months for the beleaguered precious metals' sector.
Here you have an updated chart. However, until such breakup occurs, we are
bound to qualify the primary trend as bearish, come rain or shine.
Silver and gold miners ETFs close to flashing primary bull market signal. |
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.
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 | 08/09/2013 | 169.31 | |
Current stop level: Bear mkt low | 157.06 | ||
Unrlzd gain % | Tot advance since start bull mkt | Max Pot Loss % | |
0.26% | 7.80% | 7.52% |
Sincerely,
The Dow
Theorist
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