I trust you had a good holiday weekend. We capped ours off watching some great fireworks. The market is about to have some fireworks, too, so we better get to that. Before we do, I wanted to share one picture with you. Check the post just below this one: I finally have posted a picture of my son Jeff and his new wife Danielle from last weekend's wedding, proud father that I am. [Editor's note: I see that it's not showing up today, Tuesday 7-05-05. I'll try again tonight.] But, after that let's get back to the market...
I think the biggest news for the markets we follow was the trading in the precious metals late last week. Briefly put, on Friday gold was down over seven dollars and the HUI was up 50 cents. That reaction in the mining stocks shows strong underlying support and gives you good reason to start purchasing the metals with some confidence.
If you haven't followed our advice on buying mining stocks to this point, you may want to buy silver. Silver closed at 6.85 on Friday, down over two percent but PAAS closed about even on the day. Silver is under seven dollars and should be purchased and gold is near $425 and should be purchased under $430. The market is speaking and we should listen. (We recommend reading the True Contrarian as he has posted his beginning of the week message.)
The other stocks are trying to hold their lows but should fail miserably at that task over the coming weeks. The stock market is sitting here at the beginning of a month with a holiday weekend and struggling to hold on to lows. The market should be strong at the end of the quarter and the beginning of the month. We are expecting strength but in the other direction. a strong decline that has its roots in June.
The big news event of the upcoming short week is the all important Unemployment Report. We are looking at another Friday jobs report and we are going to be comparing it with last month's figures to see if there is some deterioration. I don't really think the news matters to much this month because of the downtrend that seems firmly in place.
Dow Industrials: 10,303.44 +28.47 (where is that 10,500?)
BGEIX: 11.19
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"Prudential's chief investment strategist on Tuesday recommended that investors with the "appropriate risk tolerance" allocate 100 percent of their portfolio to equities."
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