Precious metals finish the year close to lowest lows
Let's get started with our last Dow Theory commentary for 2013.
The SPY, Industrials and the Transports closed up and made confirmed higher closing highs. As a faithful trend follower, I can only say that the primary bull market continues unabated. Maybe it will change soon, but, until then, the trend is your friend.
We close 2013 with realized profits of 8.91% for the SPY (position opened on January 2nd and closed on June 21st) and unrealized profits of 9.37% (position opened on July 18th, currently open as the primary bull market remains in force). More about performance in the post that I hope to publish on January 2nd which will be a Dow Theory review for 2013. Readers of this blog stay tuned.
Gold and Silver
SLV down and GLD closed up. Both precious metals finish the year close to their last recorded lows. 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.
Yesterday, I promised a review of 2013 according to the Dow Theory. It is taking more time than I expected and, since I want to do a good job and provide you with valuable information, it is going to be postponed for, hopefully, the next post on January 2nd. 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.
Happy new Year.
The Dow Theorist