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Dow Theory Update For Jan 30: Stocks Finally Down. No Changes In Trends

|Includes:DIA, GDX, GLD, IYT, SIL, SLV, SPDR S&P 500 Trust ETF (SPY)

Something unpleasant may be happening to the USD and Bonds

Let's get started with our Dow Theory commentary for today.

The SPY, Industrials and Transports closed down today. The primary and secondary trend remains bullish.

Today's volume was lower than yesterday's. Since it was a down day, it has a bullish connotation since lower prices were not supported by volume. The overall pattern of volume remains bullish.

Gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) closed up. Yesterday I wrote that the BLV/GLD ratio was turning bearish. Today the ratio has fallen out of bed. See below an updated chart of the BLV/GLD ratio (the red line is the ratio, and the green horizontal line are the last secondary reaction lows of the ratio which were violated yesterday). When I find some free time (always in very short supply), I will write more about the implications of a falling ratio for gold, stocks, bonds themselves and the US dollar. In the meantime, you may get a glimpse of it by reading this post.



Bonds are turning bearish. Now turning weaker than an already weak gold

The primary and secondary trend remains bearish.

SIL closed unchanged. GDX closed down. The miners look unable to rally even in the presence of falling bonds and rising gold.

The primary and secondary trend remains bearish.


The Dow Theorist