Stocks weak in spite of closing rally
Let's get started with our Dow Theory commentary in this blog.
Bill Gross teaches us to be humble
Bill Gross, of PIMCO fame, in his article "A man in the mirror", has made an exercise in humility. He concedes that most applauded gurus have enormously benefited by unusual secular tailwind. He thinks that a 40-year successful track record is no confirmation of "greatness" in the business of investing because unlimited credit expansion has lifted many boats.
It is a sobering piece, which every investor should read. You can find Gross' article here.
The SPY and Industrials closed down. The Transports closed up. The primary and secondary trend remains bullish.
Today's volume was higher than yesterday. Since stock closed down it has a bearish connotation as declining prices were supported by expanding volume. This is the third bearish volume day in a row within an overall bearish volume picture as reported here.
Gold and silver
GLD inventory did not budge yesterday.
GLD and SLV closed up. The primary and secondary trend remains bearish.
GDX and SIL, the gold and silver miners ETFs closed down and up respectively.
The Dow Theorist