Stocks closed up near highest highs
Let's get started with our Dow Theory commentary in this blog.
The SPY, Industrials and Transports closed up. The primary and secondary trend remains bullish.
Today's volume was higher than yesterday's, which is bullish and higher prices were supported by expanding volume. We have had 3 bullish volume days in a row. I'd label the overall picture of volume as neutral. Here you have an updated chart.
Gold and silver
GLD lost inventory yesterday. At this pace, GLD will be drained before the end of 2013. Something has to give in.
Zero Hedge reports that today silver had its best day in 15 months. Such momentum explosions (when they occur near bottoms) tend to be bullish and signal a change of trend. However, I'd rather trust less arcane and more solid Dow Theory to spot a change of trend. I am in no need to call the absolute market top or bottom. I am happy with spotting a change of trend soon enough to get in or out and get the "meat" that resides in the middle of a trend.
Gold has retraced almost ½ of the losses made since April 12. Let's see if the rally holds and doesn't fizzle out.
GLD and SLV closed up. The primary and secondary trend remains bearish.
As to the gold and silver miners ETFs, GDX and SIL, both closed up. The primary and secondary trend remains bearish.
The Dow Theorist