Contributor Since 2012
Co-Editor of the top-ranked investment Letter thedowtheory.com
Investor and Trader As an investor I'm deeply influenced by Dow Theory, especially by the book "The Dow Theory for the 21st Century". I focus on the primary trend (1-2 years). My trading is short-term based (avg trade duration 4-5 days).
In addition to US stock indexes, I have successfully expanded the application of the Dow Theory to precious metals, their miners, and US interest rates. The Dow Theory is a more accurate timing device that moving averages, breakout systems, etc.
Precious metals close down
Let's get started with our Dow Theory commentary on this blog for today.
The SPY closed unchanged and the Industrials closed down. The Transports closed up.
Here you have an updated chart reflecting the latest action of the three indices we monitor:
Today's volume was higher than yesterday's. However, as price action was so indecisive, I don't ascribe any particular meaning to today's action. The overall pattern of volume is bearish.
Gold and Silver
SLV and GLD closed down. The primary trend is bearish, as explained here and reconfirmed bearish here. The secondary trend is bullish (secondary reaction against the primary bearish trend), as explained here.
GDX and SIL, the gold and silver miners ETFs closed down
The secondary trend for GDX and SIL is bullish, as explained here.
The Dow Theorist