Monday Again

Friday's volume was light again and without volume there usually can't be sustained upside, not to mention the down day we saw on Friday. We are more and more convinced that this market is topping and that the highs we saw late last week will probably hold for some time. We remain very bearish considering the highs set late last week.

As far as precious metals and mining stocks go, we are much more constructive and encourage you to read the new post at the True Contrarian link to the left. He is making the case to buy the metal under $420 with a possible downside of $406, so keep that in mind. And, he says that mining stocks should be picked up if the HUI dips below 190, and maybe that will be here early this week since the HUI closed just over 190 on Friday. There are opportunities in the precious metals and mining stocks for those of you who want to be bullish on stocks. We continue to watch PAAS for another entry point, hoping for the low 14's.

June could see a swift downward correction of this rally of the past month and we are going to be happy to see it for our trading accounts. Tonight the futures are not particularly motivated in either direction, must be waiting until trading opens tomorrow like we are.

Last Friday morning we said something about the bond market being happy about the low jobs number and we should have paid more attention to that statement alone. We talk about morning pops in the stock market being good selling opportunities. Well, from the looks of the way the bonds ended on Friday that they follow the same pattern. Right after the news, they were up strongly and by the end of the day they were down, a nice reversal day and quite probably very bearish for bonds. Don't forget that as bonds go UP, rates go DOWN but when bonds go down, rates go up.

All in all Friday shaped up to be a nice turn around day but only time will tell if we are correct.

Dow Industrials: 10460.97 -92.52 (back under 10,500)
BGEIX: 10.57