Lull in the markets
Days pass by and trends don’t change. No Dow Theorist ever promised that applying the Dow Theory is going to be thrilling. It is dry, and does not lend itself to fancy and entertaining reading.
US Stocks remain caught in a narrow range, which seems
to be getting narrower for the SPY and the Industrials (see chart below). One way or the other, stocks should soon show us the way to go.
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| SPY (bottom) and Industrials see shrinking volatility |
The Transports,
on the other hand, have violated their January 30, 2015 closing lows (secondary
reaction lows), something which has not been confirmed by the Industrials and
the SPY. As you know, one of the tenets of the Dow Theory is than unconfirmed movements
tend to be deceptive.
Schannep, of “thedowtheory.com” has just alerted his
subscribers that several studies extraneous to the Dow Theory (i.e. use of
margin in broker’s accounts) seem to be anticipating a primary bear market.
Thus, even though, he has not issued a “sell” signal, as he acts on actual
signals, not mere conjectures, he clearly sees clouds on the horizon.
As to the precious metals and their miners ETFs, more
of the same. The primary trend is bullish and the ongoing secondary reaction
continues.
Thus, my analysis of March 24 and March 12, remains
valid:
Sincerely,
The Dow Theorist
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