Friday morning the Dow tried to put on a happy face and rally a bit and then dropped into the negative. The rest of the morning saw the Dow rally but by about midday, the market just nose dived, with the Dow down around 100 points late in the session. It managed a bit of a rally in the final hour and cut it's losses to about 50 points.
The NASDAQ, on the other hand, decided to follow DELL's lead and rally, although as the Dow was dropping so was the NASDAQ. It looked as though the entire market was about to fall out of bed when a late day rally pushed prices back up but left the Dow negative.
For whatever reason, the market has abandoned most stocks except the tech related stocks, particularly the ones we are short. Oh well, we will have our day very soon. We do have a little powder dry (too bad we don't have more with this incessant rally since the April 15th low) and would be ready to deploy it with any more rally.
We have been interested in the gold complex but Friday was another desperate day in precious metals land with the stock dropping more than the metals. The commitment of traders showed another healthy drop in the net short position of the commercials. That report is based on Tuesday's close and doesn't reflect the drop in gold prices the rest of the week. Anyway, we are probably getting very close to a buying opportunity here with the HUI closing at 168.05. The BGEIX fund closed at 9.48 and PAAS closed at 12.60. All of these prices are very tempting at this point. If you take a second to look at the True Contrarian link, you will find a very bullish article on the mining shares.
Dow Industrials: 10,140.12 -49.36