Manuel Blay's  Instablog

Manuel Blay
Send Message
Trader and investor. My trading is short-term based (avg trade duration 4-5 days). As investor I'm deeply influenced by Dow Theory
My blog:
Dow Theory Investment
  • Dow Theory Update For Feb 7: Inconclusive Day With No Change In Trends  0 comments
    Feb 7, 2013 5:07 PM | about stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL

    Precious metals continue aimless.

    I am finishing a new post for this Dow Theory blog, which will continue the series I started with my post "How often does the Dow Theory outperform buy and hold?" In the next issue, I will focus on the secular 1966-1981 bear market. I will look under the magnifier the way the Dow Theory behaved under such a terrible bear market. The conclusions are truly encouraging and prove that the Dow Theory really provides the investor with an edge.

    Today was an indecisive day. The SPY and Industrials closed down. The Transports closed up. The primary and secondary trend of the market remains bullish.

    Today's volume was lower than yesterday's. Since, albeit mildly, it was a down day, contracting volume has a bullish implication. I'd label the overall pattern of volume as neutral.

    Gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) closed down. More meandering. The primary trend and secondary trend remain bearish.

    GDX closed up, and SIL closed down. The primary trend and secondary trend remain bearish. I specially dislike that all the price action is occurring below the level that defined the primary bear market signal. The fact that these two ETFs are unable to even rally for some time above prior relevant lows shows that distribution is more likely than accumulation right now. Here you have an updated chart.



    (click to enlarge)
    SIL and GDX remain bearish. SIL displays greater relative strength (red line SIL/GDX ratio)


    The Dow Theorist

    Stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL
Back To Manuel Blay's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.