Stocks seem to take a breather.
Richard Russell cautiously recognizes primary bull market under the Dow Theory.
Richard Russell, of the "Dow Theory Letters" cautiously acknowledged that "being in the market is justified under Dow Theory" and even suggests a small position in the DIA. Thus, it seems that after seeing the all-time highs in the Industrials (which confirmed previous all-time highs made by the Transports), the only valid conclusion under the Dow Theory (of any flavor) is that a primary bull market is in force.
Of course, Russell is too experienced not to hedge his opinion, and, thus he rightfully says that he doesn't like this market.
The Industrials closed up. The SPY and Transports closed down.
Today's volume was higher than yesterday's. Thus, it was a bearish volume day as declining prices were met by expanding volume. The overall picture of volume remains bearish for the reasons stated here.
Gold and Silver
GLD lost yesterday 3.01 tonnes. Current holdings amount to 1236.73 tonnes. The bleeding continues, which is ominous, since prices little by little are going up. If past experience is to be repeated again, rising prices should stop the bleeding. Failure to do so may result in even higher prices. However, there is no need to jump the gun, since we are not in the business of calling exact bottoms. Let's wait until a primary bull market is signaled in the charts.
GLD and SLV closed up. The primary and secondary trend remains bearish.
As to the gold and silver miners ETFs, GDX and SIL both closed up. The primary and secondary trend remains bearish.
The GDXJ/GDX ratio (gold junior versus gold miners ETF) shows that junior miners are displaying greater relative strength. This is a hint that a change of trend may be nearing. Normally, bear market conditions tend to afflict specially the juniors. Stronger juniors seem to suggest (if such strength continues) that the primary bear market may be in its death-throes. Here you have the chart. The red line shows the GDXJ/GDX ratio:
The Dow Theorist