Saw See

Today was another up day for the market even though it didn't start out that way with INTC and YHOO leading the way down. Those two stocks never did recover today but the initial decline in the stock market vanished to green by late in the day. INTC was down over 4% and YHOO was down almost 11.5%.

The headlines read "NASDAQ hits four year high". Yes, indeed it has but that six year high will be very difficult since we would need a rally of over 150% from here. At any rate, the market is finally up to its December highs as measured by the SP500 and the NASDAQ. What does that mean?

Well, to me, that means the market is at a crucial point trying to prove itself as a bull. I am a little skeptical, imagine that, when it comes to going along with this rally. I prefer to buy cheaper assets like the precious metals. And in that regard...

The dollar may have just hit the ceiling even with Greenspan's testimony today, that being that the economy is good and the Fed needs to continue raising rates. That should, and temporarily did, firm up the dollar and weaken the Euro but by day's end, that wasn't the case. Gold and silver were firm today along with the Euro. So, the tide may have turned negative on the dollar and positive on the Euro and the metals. We will stay in these assets rather than pay these enormous prices for other stocks.

So, we had IBM give good vibes to the market on Monday and popped the it on Tuesday. Then we had INTC and YHOO to bring it down this morning, as short lived as that was. And, tonight, we have EBAY up over ten percent. I don't think EBAY holds sway over the market like INTC or YHOO but we'll see tomorrow.

Like I said, the market is at a critical point here making basically a double top with the December highs. I never thought this could be possible but I guess I should be thankful for a little life in the market after the dulls over the past couple of months.

Dow Industrials: 10689.15 +42.59
BGEIX: 10.91