Seeking Alpha

Manuel Blay's  Instablog

Manuel Blay
Send Message
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).
My blog:
Dow Theory Investment
  • Dow Theory Update For November 4: Transports Make Higher Highs Unconfirmed  0 comments
    Nov 4, 2013 5:59 PM | about stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL

    Volume dries off

    US stocks

    The SPY, Industrials and Transports closed up.

    The primary trend is bullish, as explained here, and more in-depth here.

    The primary trend was reconfirmed as bullish on October 17th, for the reasons given here.

    Today's volume was lower than Friday's, which is bearish, as higher prices were not met by stronger volume. I consider volume to be bearish for the reasons given here and here. Furthermore, the trendline of volume of the last few days is ominously bearish, as volume has steadily contracted as prices advanced and has expanded as prices declined.

    Gold and Silver

    SLV and GLD closed down. For the reasons I explained here, and more recently here, I feel the primary trend remains bearish. Here I analyzed the primary bear market signal given on December 20, 2012. The primary trend was reconfirmed bearish, as explained here. The secondary trend is bullish (secondary reaction against the primary bearish trend), as explained here.

    Here, I explained that GLD and SLV set up for a primary bull market signal. However, a setup is not the same as the "real thing," namely the primary bull market; thus, many "setups" do not materialize and until the secondary reaction closing highs are jointly broken up, no primary bull market will be signaled.

    SIL and GDX closed up, thereby escaping momentarily the "danger zone" I alluded to here. SIL and GDX, unlike GLD and SLV, are in a primary bull market under the Dow Theory, as explained here and here.

    The secondary trend is bearish, which is tantamount to saying that there is an ongoing secondary reaction against the primary bullish trend, for the reasons given here.

    Sincerely,

    The Dow Theorist

    Themes: Dow Theory Stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL
Back To Manuel Blay's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.