Stocks losing momentum
Let's get started with our Dow Theory commentary for today.
The SPY and Industrials closed up, thereby making higher highs. The Transports slightly down. The primary and secondary trend remains bullish.
Volume was higher than yesterday's. Since it was an "up" day, volume supported advancing prices, which is bullish.
Gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) closed up. Is the meltdown being arrested? Keep an eye on long-term bonds and their relative strength with gold (look at the chart below). Today the ratio has turned bearish, which denotes stronger gold and weaker bonds. In the coming days, I will write an update about the vital BLV/GLD ratio.
|The BLV/GLD ratio is turning bearish. Is bond's weakness to slow down gold's decline? Or will higher interests extend the current primary bear market in gold?|
The primary and secondary trend remains bearish.
As to SIL and GDX, they closed up. The primary and secondary trend remains bearish.
The Dow Theorist