And trends remains unchanged
Let’s get started with our daily Dow Theory commentary on this blog.
US stocks
The Industrials, and Transports closed up. The SPY closed weakly down.
The primary trend was reconfirmed as bullish on October 17th and November 13th, for the reasons given here and here.
Today’s action was unclear and I cannot label volume as either bullish or bearish. The overall pattern of volume remains bearish, though.
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. HereI 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.
Here, I explained that GLD and SLV set up for a primary bull market signal. However, a setup is not the same as the “real thing,” namely the primary bull market; thus, many “setups” do not materialize and until the secondary reaction closing highs are jointly broken up, no primary bull market will be signaled. However, such set up will be nullified if GLD and SLV jointly violate the last recorded primary bear market lows, as I explained here.
As to the gold and silver miners ETFs, SIL closed down and GDX closed up. The primary trend is bearish, as was profusely explained here and here. Likewise, the secondary trend is bearish.
Here you have the figures for the SPY which represents the only market with a suggested open long position:
| Data for December 13, 2013 | |||
| 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 | 12/13/2013 | 178.11 | |
| Current stop level: Secondary reaction low | 165.48 | ||
| Unrlzd gain % | Tot advance since start bull mkt | Max Pot Loss % | |
| 5.47% | 13.40% | 2.05% | |
Sincerely,
The Dow Theorist
