The market got off to a big start this morning and showed about a 1% gain in the first hour of trading. After that the market hit a brick wall--could it be last week's highs were holding? Well, of our three indexes only the SP500 made a new high today compared to last week. The other two, NASDAQ COMP and DOW Industrials did not make new highs. You guessed it, that's a big nonconfirmation. Looking at the rest of the day, the markets turned down and basically closed on the lows of the day, although the DOW managed a 16 point gain.
This is the type of market action that we are expecting and it does not surprise us. As the Dow traded over 10,500, AGAIN, we have to admit a little nerves but when it was over the market managed a big turn around to the down side. This type of day gives us more confident in calling last week's high the top. Of course, we won't know that until we see some further deterioration in prices and we are watching for that.
Tonight TXN, Texas Instruments, announced some good news, at least the market liked it and we are seeing some strength in the overnight markets; but, as we've seen many times in the past, overnight markets don't always mean and up morning.
The precious metals were mixed today with the mining stocks taking another breather pulling the HUI down to 184.75 well under 190. The next rally here might be pretty strong so we want to take advantage of that move. We put an order in to buy PAAS this morning but tried to get it for too cheap so we didn't get it. We may try again tomorrow.
We want to remind you that this market is very ready to go down and it will be very tricky. We have tried to give you a good warning about what we think will be the top, last week. Be careful with your assets.
Dow Industrials: 10,483.07 +16.04 (Dow got over 10,500 today but couldn't hold it)
BGEIX: 10.35
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