Monday again brought a lift to the market, or as the CNN Money site said, another happy ending. Well, not to us. The market has managed two big weeks of price gains and on very little volume. Apparently the rest of the bulls want to buy stocks. We are waiting patiently for this market to find a top. It has moved up without much conviction and we don't believe that it can continue for long, but we have said that for a while now. But, here we are above 10,500 in the Dow. The March highs are still in place so we are continuing our bearish stance.
Since the lows of mid-April, prices have surged quite a bit and our Margin portfolio has suffered due to our not having buy stops to protect our shorts. We did put our shorts on for a good intermediate trade but we did not want to have to crawl up out of the cellar to find some gains. More tomorrow...
We recommended buying gold stocks in the form of the mutual fund BGEIX. The gold index, HUI, was up strongly today while gold was very subdued and hardly moved at all. This is exactly the type of action we were hoping for and are glad to be in a little mining fund for now. If prices drop a bit from here we may want to get a little more. The price we got today was 9.71.
Dow Industrials: 10,523.56 +51.65