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Manuel Blay's  Instablog

Manuel Blay
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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).
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Dow Theory Investment
  • Dow Theory Update For November 11: Industrials Make Higher High  0 comments
    Nov 11, 2013 4:39 PM | about stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL

    SIL and GDX continue at critical juncture.

    Let's get started with our Dow Theory commentary for today.

    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 much weaker than Friday's. This 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 trend line of volume of the last few days is ominously bearish, as volume has steadily contracted as prices advanced and has expanded as prices declined. Here you have an updated chart:

    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 closed down, and GDX closed up. SIL and GDX are still flirting with a primary bear market signal, as was explained here and 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
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