And precious metals come to life (within the secondary bullish trend)
Excellent article on active versus passive investing
The “Systematic Relative Strength” (Dorsey Wright) has published an enlightening article concerning factor investing (being “factor” different investment styles like momentum, value, volatility). The article makes two important claims:
1. Factor investing (i.e. constructing a portfolio using different investment styles, each one with its own proven outperformance) manages to increase absolute performance, while, at the same time, reducing risk (volatility).
2. What passes as “passive” investment (i.e. index investing), is not as “passive” as many may think. They make the bold, and right, claim that “index investing is active investment” (emphasis in original).
You can read the article “Factor Investing” here.
Stocks
The SPY and Transports closed down. The Industrials made a higher high, unconfirmed.
Today’s volume was higher than yesterday’s, which is bearish as lower prices were attracted stronger volume. I’d label the overall pattern of volume as neutral.
Gold and Silver
SLV and GLD closed up. The primary trend is bearish, as explained here and reconfirmed bearish here. The secondary trend is bullish (secondary reaction against the primary bearish trend), as explained here.
GDX and SIL, the gold and silver miners ETFs closed up, and bettered the last secondary reaction closing highs.
The secondary trend for GDX and SIL is bullish, as explained here.
Here you have the figures for the SPY, which represents the only market with a suggested open long position.
| Data for July 23, 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 | 07/23/2013 | 169.14 | |
| Current stop level: Bear mkt low | 157.06 | ||
| Unrlzd gain % | Tot advance since start bull mkt | Max Pot Loss % | |
| 0.16% | 7.69% | 7.52% | |
Sincerely,
The Dow Theorist
