Monday, July 11, 2005

Dow 10,500 AGAIN!!!

Well, there you go, another chance to see 10,500. It was another glorious up day in the market today with all the major indexes up on the day. In "short", it was a good day to sell stocks again. We have tried to encourage readers to take advantage of price swings to sell into and to buy into. We have been cautious on the stock market for a long time due to the set up to a fall we have been watching for the last six months. The media is telling you to get on this bull ride. We have said that the highs for the year are behind us, at least in the indexes we follow. Today, the market has again gone into overbought mode. We suggest selling into this strength.

The Real bull market is taking place in the commodities and we have suggested to get on that parade since mid-May. Our original idea was that mining stocks had gotten way oversold and we were buying into that weakness. The HUI index closed at 205 today after trading at just over 165 in May, for those of you without a calculator, that's 40 points or almost 25%. Show me that type of gain in the stock market or the bond market in the last two months.

Our beautiful little gold mining mutual fund, BGEIX, has done very well, too, closing at a new high for the move today, albeit only a penny higher, at 11.34. If you remember, we got you in at 9.71 on May 23rd, just a week after the May low.

Dow Industrials: 10,519.72 +70.58
BGEIX: 11.34

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