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Manuel Blay's  Instablog

Manuel Blay
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Investor and Trader As investor I'm deeply influenced by Dow Theory. I focus on the primary trend (1-2 years). My trading is short-term based (avg trade duration 4-5 days).
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Dow Theory Investment
  • Dow Theory Update For March 8: Stocks Make Higher Highs  0 comments
    Mar 8, 2013 4:35 PM | about stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL

    Gold and silver up

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

    Stocks

    The SPY, Industrials and Transports made higher highs. Thus, the primary bull market has been re-confirmed once again. The primary and secondary trend remains bullish.

    Today's volume receded as stock prices advanced, which has a bearish connotation. My overall assessment of volume continues bearish short term for the reasons given here. However, as I have explained countless times in this Dow Theory blog, volume merely serves to qualify trends. In other words, trends are made by prices and you can go broke because your stock goes down, even if it declines on negligible volume. Thus, volume merely increases o decreases the odds of a trend (or reversal) to occur. Thus, a bullish trend confirmed by volume has better odds of continuing than one not supported by volume. Nevertheless, the final verdict is given by price action.

    Here you have an updated chart reflecting price and volume patterns.

     

     

    (click to enlarge)
    Volume still bearish short term

    Gold and silver

    GLD lost yesterday, March 7, almost two tonnes. The bleeding continues, albeit more mitigated.

    GLD and SLV closed up. The primary and secondary trend remains bearish.

    The gold and silver miners ETFs (GDX and SIL) closed up. The primary and secondary trend remains bearish.

    Sincerely,

    The Dow Theorist

    Themes: Dow Theory Stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL
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