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: Stocks Fail To Make Higher Highs  0 comments
    May 1, 2013 4:38 PM | about stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL

    Gold and silver down.

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


    The SPY, Industrials and Transports closed down. The higher high made by the SPY two and three days ago, remain unconfirmed, which suggests weakness and increases the odds for a secondary reaction, unless either the SPY or the Industrials make higher highs soon.

    The chart below shows the highest high recently made (red horizontal lines) and the failure of both the Industrials and Transports to break above such highs.



    (click to enlarge)
    SPY (bottom of the chart) made higher highs unconfirmed by the Industrials (top) and Transports (middle)

    The primary and secondary trend remains bullish.

    Today's volume was lower than yesterday's. Since it was a down day, this has a bullish connotation, as declining prices were not joined by volume.

    Gold and silver

    Guess! GLD lost inventory once again…is it being drained into extinction?

    GLD and SLV closed down. The primary trend is bearish, and the secondary trend is bullish. If this pullback persists further, we could get the set up for a primary bull market signal. To this end, gold or silver should decline ca. 3% and 6% respectively.

    As to the gold and silver miners ETFs, GDX and SIL, both closed down. The primary and secondary trend remains bearish.


    The Dow Theorist

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