Thursday, May 19, 2005

LEI Go Unnoticed

Today we saw the market move sideways for most of the day with a pop at the end of the day. There is really not much to report this evening except that the LEI, the Leading Economic Indicators, showed another month of decline and largely went unnoticed. The other news out on Thursday as every Thursday was the weekly claims for unemployment benefits. They were down but the four week average was up a little. Again, not much to report this evening. Friday is options expiration and this could be the end of the move. Today's volume was light again.

The gold complex showed weakness again today with the mining stocks dropping again. (There was some currency talk out of South Korea that suggested a loosening of the dollar peg.) We are waiting for a confirmation a good low is in place. Right now we are waiting to see if the lows in the HUI set this past week will hold. If so, we can begin to feel more confident about buying the mining stocks. Tomorrow we get another dose of traders' commitments and with gold dropping a little this week we should see more contraction in the commercial short position.

Have a great weekend.

Dow Industrials: 10493.19 +28.74 Dow is near 10,500--unbelievable!!!

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