Precious metals gather some strength, albeit bearish trend remain unchanged
If you are interested in reading the 2013 Dow Theory review please go here. You’ll see that we tended to be on the right side of the market most of the time.
The SPY, and the Transports closed up. The Industrials closed down. The Transports bettered the 12/31/2013 closing highs. However, the SPY and the Industrials did not confirm. The longer the non-confirmation persists the higher the odds for a secondary reaction to develop.
The primary trend was reconfirmed as bullish on October 17th and November 13th, for the reasons given here and here.
Gold and Silver
SLV and GLD closed up. For the reasons I explained here, and more recently here, I feel the primary trend remains bearish. Here I analyzed the primary bear market signal given on December 20, 2012. The primary trend was reconfirmed bearish, as explained here. The secondary trend is bullish (secondary reaction against the primary bearish trend), as explained here.
As to the gold and silver miners ETFs, SIL and GDX closed up. The primary trend is bearish, as was profusely explained here and here. Likewise, the secondary trend is bearish. Please mind that in spite of today’s strength, SIL and GDX remain below the red horizontal lines (the level at which a primary bear market was signaled), which is certainly non bullish.
|SIL and GDX remain bellow the red horizontal lines: Primary bear market undisputed.|
Here you have the figures for the SPY which represents the only market with a suggested open long position:
|Data for January 10 , 2014|
|DOW THEORY PRIMARY TREND MONITOR SPY|
|Bull market started||06/24/2013||157.06|
|Bull market signaled||07/18/2013||168.87|
|Current stop level: Secondary reaction low||165.48|
|Unrlzd gain %||Tot advance since start bull mkt||Max Pot Loss %|
The Dow Theorist