Silver and Gold miners ETFs made new confirmed higher highs
US STOCKS
The primary trend turned bearish on June 24th,
as was profusely explained here.
The secondary trend, evidently, is bearish too, as no
secondary reaction has been born. The current rally is irrelevant from a Dow
Theory standpoint, as the minimum time
requirement has not been met.
GOLD AND SILVER
Today SLV finally managed to better on a closing basis
its last recorded primary bull market highs of April 29th, 2016
(blue arrow on SLV’s chart), and thereby, it has confirmed GLD’s higher highs
of June 15th, 2106 (blue arrow on GLD’s chart). Therefore, the
primary bull market highs (red horizontal lines) have been jointly broken out,
which means:
1)
The primary bull market has been reconfirmed.
2) The secondary reaction (red rectangles on the
charts) is thereby extinguished, and hence, the secondary trend turns bullish
too.
3) The setup for a primary bear market has been
evidently extinguished too. I always insist that a setup for a primary
bear/bull market is just that: A setup. Sometimes it materializes into a real
signal, sometimes not.
Here you have an updated chart:
![]() |
Primary bull market reconfirmed |
Therefore, any new secondary reaction is to be counted
from the new recorded highs (or those highs that may likely follow).
GOLD AND SILVER MINERS ETFs
The primary and secondary
trend is bullish as explained here
The most recent decline
experienced by SIL and GDX did not qualify as a secondary reaction. Today’s confirmed higher highs have set anew the
clock for a secondary reaction to zero (more about it here).
Here you have an updated
chart:
By the way, the price action
of SIL and GDX following the Dow Theory “buy” (primary bull market) signal of
March 3rd 2016 epitomizes the need to act quickly on any signal.
Those not acting on the signal who waited for a pullback in order to get a
better entry price have been disappointed by price action. Irrespective of
whether it is a “buy” or “sell” signal act as soon as possible.
Sincerely,
The Dow Theorist
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