Trader Dan shares bearish outlook for gold
Dan Norcini has recently made a conclusive technical analysis of gold. While he is not applying the Dow Theory to gold and silver, I find his analysis flawless, and from a different perspective, confirms the bearishness of the precious metals sectors. Here you can read his November 22 post "Gold Squeaks Out only a Meager Bounce".
The Industrials and Transports closed up. The SPY closed down.
Today's volume was higher than Friday's. This is bearish, as lower prices were t met by stronger volume. I'd label volume as neutral for the reasons given here.
Gold and Silver
SLV, and GLD closed up. 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.
All in all, the last shoe to drop for the precious metals sector would be GLD and SLV reconfirming the ongoing primary bear market. Until this happens, the secondary trend is bullish, and this is the only "bullishness" to be found in this beleaguered sector.
The Dow Theorist