Consumer Confidence Rises, Oil Falls

The market had one of those bounce days that we so often see after a solid selloff. The Dow had been down six days in a row and today decided it might try to go up. With little resistance, the Dow managed better than a hundred points today on good consumer confidence numbers and a big drop in oil prices. I still think that $58 oil is pretty expensive but the market rallied on that drop anyway. Bonds weren't too happy and dropped a little increasing rates by a little bit today.

I received a comment today regarding GM being dropped from the Dow Industrials. The comment was that with GM going down, an investment in an inverse Dow fund would not benefit from a further drop in GM. My thought is that GM has already dropped quite a bit and will be replaced by a stock that HAS gone up allowing a larger drop in the Dow. Any comments?

Gold and silver were both down today and silver itself is looking pretty close to a buy to me. Personally, I have been very patient with a silver purchase and the time is definitely close. The True Contrarian advises buying silver under $7 an ounce and today it closed at 7.09 down about 15 cents. PAAS was down during the day but recovered to close modestly up on the day, a very strong showing. (I own PAAS in another account.)

Dow Industrials: 10405.63 +114.85 (longing for 10,500)
BGEIX: 10.95