Trends for gold, silver and their miners unchanged.
US STOCKS
The SPY, Industrials and Transports closed up. On
Thursday, January 29, the Industrials violated their secondary reaction lows
(which puts us very near to a primary bear market signal). On Friday 30, the Transports did so. However, lack of
confirmation as the SPY has refused to violate its secondary reaction lows)
prevent us from declaring a primary bear market. Today’s action has, for the
time being, eloigned such a peril. So
we have to further observe the market. Please bear in mind that under Schannep's Dow Theory the S&P 500 (SPY) must be present for a valid primary bull/bear market signal to be given (However, just the Industrials and Transports suffice, if we had had a secondary reaction as per classical/Rhea Dow Theory)
Stocks set up for a primary bear market signal on
January 23rd, as explained here.
The secondary trend is bearish as explained here.
Readers of this Dow Theory blog, stay tuned: I plan to
post very shortly (maybe later today or tomorrow) the closing chapter of the
saga “Schannep and I brainstorming about the last Dow Theory signal”. It has been a real tour de force, and I thank
Jack Schannep of “thedowtheory.com” for sharing insights with me. For me such
insights are valuable, as they are not to be found in any book.
Gold and Silver
SLV and GLD closed down. The primary trend is bullish
as explained here. The
secondary trend is bullish too (no secondary reaction in sight). So in spite of
today’s action, not even the secondary trend has been changed if we are to look
at the markets through Dow Theory lens.
Gold and Silver
miners ETFs (GDX and SIL)
As to the gold
and silver miners ETFs, SIL closed and GDX closed up.
On January 12, 2015, a primary bull market was
signaled. More information as to the details of such a signal here.
The primary and secondary trend is bullish.
Sincerely,
The Dow Theorist
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