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Dow Theory Update For April 26: Stocks Meandering

|Includes: DIA, GDX, GLD, IYT, SIL, SLV, SPDR S&P 500 Trust ETF (SPY)

GLD cannot stop puking

Doug Short reports durable goods orders plunged in March

Doug Short, a market analyst I respect, reported in Seeking Alpha that durable goods orders collapsed in March. He makes a conclusive case (supported by charts) that there is a strong correlation between durable goods orders and subsequent S&P performance. If past experience is to be proven right again, we should brace ourselves for a secondary reaction, which, hitherto, the market has stubbornly dodged.


The Transports and the Industrials closed up. The SPY closed down. The primary and secondary trend remains bullish.

Volume contracted today, which is bullish as declining prices in the S&P and broad indices like Nasdaq were not supported by expanding volume.

Gold and silver

GLD lost inventory again. GLD's inventory's malaise is not unique to this ETF. There is a run on physical gold and, thus, as reported by, gold is disappearing from all depositories. Thus, over the past 4 weeks total inventories collapsed by over 5.5. million ounces. This is not small potatoes. Where is the gold going? Who is so desperately seeking physical gold? The bullion banks in order to meet allocation demands? Why such deluge of allocation requests? Has it something to do with the USD? These are questions that any inquisitive mind should pose. I am not so sure about the answers, but at least we have to be inquisitive enough to smell a rat. At the risk of repeating myself, I feel that the best answers have been given by blogger Fofoa whom you can read here.

GLD and SLV closed down. The primary and secondary trend remains bearish.

GDX and SIL, the gold and silver miners ETFs closed down. The primary and secondary trend remains bearish.


The Dow Theorist