Manuel Blay's  Instablog

Manuel Blay
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Trader and investor. My trading is short-term based (avg trade duration 4-5 days). As investor I'm deeply influenced by Dow Theory
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Dow Theory Investment
  • Dow Theory Update For Feb 4: Stocks Finally Down  0 comments
    Feb 5, 2013 9:40 AM | about stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL

    Precious metals mixed.

    Let's get started with our Dow Theory commentary in this blog.

    The SPY, the Industrials and the Transports closed down. It is too soon to announce the onset of a secondary reaction (we need a pullback of at least 3% in two indices). Thus, the primary and secondary trend remains bullish until proven otherwise.

    Volume was lower today than Friday's volume. The downward movement was not confirmed by expanding volume, which has a bullish implication. The overall pattern of volume is subtly degrading (in the very short term). Here you have an updated chart. If you look at it, you will see that the latest pivot had bearish volume implications.



    (click to enlarge)
    Is volume turning bearish?

    Gold (NYSEARCA:GLD) closed up, and silver (NYSEARCA:SLV) closed down. As you can see the Dow Theory has nothing to do with short-term trading as both the primary and secondary trend remains bearish (almost from time immemorial since almost 2 months looks like eternity for short term traders).

    GDX closed up whereas its silver peer SIL (silver miners ETF) closed down. The primary and secondary trend remains bearish.


    The Dow Theorist

    Stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL
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