Jack Schannep, of thedowtheory.com, made two valuable comments to my post of May 8th, 2021.
The first one concerns a miscalculation in the rally that started on 3/1/2021 for GDX and 3/30/2021 for SIL. Here you have the correct figures.
In any instance, the appraisal of the secondary reaction doesn’t change. So all my conclusions remain valid.
The second observation concerns Schannep’s interpretation of the sentence “lasting from three weeks to as many months” for a secondary reaction to exist. As per Schannep, 15 trading days suffice. It is not necessary to wait for the 16thday to declare the existence of a secondary reaction. I thank him for the clarification. My appraisal of a secondary reaction against the primary bear market when one takes the longer-term view remains unchanged.
Thanks Jack!
Sincerely,
Manuel Blay
(One Dow Theorist)
