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Dow Theory and Chinese stocks
As you know, the US stock market is in a primary bear market, as I have explained here, and further explained here. I also wrote that less than 5% was lost from peak to trough, which is outstanding timing. So I wanted to see whether the Dow Theory would have done a good job at protecting investors in the Chinese stock market. As you can guess, the Dow Theory did a remarkable good job in spotting early enough (March 13) the change of trend for Chinese stocks, as you can read here.
The SPY, Industrials, and Transports closed up.
Today's volume was lower than yesterday's, which is bearish as ascending prices were not joined by raising volume. The overall pattern of volume is bearish for the reasons explained here.
Gold and Silver
Eventually, one of these primary bear market re-confirmations will be proven false. In the meantime, it is better not to fight the trend, and wait for a primary bull market signal in order to make a commitment on the long side.
The Dow Theory