Precious metals strong, but trends unchanged
Jon Strebler, Richard Rusell's associate at the "Dow Theory Letters" has recently nailed it down when he wrote: "Stocks can't continue this [going up] forever¸ but they can do anything they want for longer than you or I think they are irrational"
By the way, I like the way Strebler analyses the market. Furthermore, although sparingly, he uses from time to time the classical Dow Theory. It must be said that Strebler was on the right side of the market during 2013 for both stocks and precious metals.
The SPY closed down, the Industrials and the Transports closed up and failed to break above recent highs.
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.
Later today, I will post a review of 2013 according to the Dow Theory. We will revisit all the Dow Theory-based market calls and how we have fared compared to buy and hold. It'll be a real tour de force, as you will have before your eyes one full year of market action.
The Dow Theorist