Last Friday the market was soft on the heals of DELL's announcement on Thursday evening that the world was not as great as they had hoped. DELL managed to drop about 7.5% by the end of the day dragging down the market a little too. By the end of the day, the traders had enough of selling and bought some going into the closing minutes. I suppose it could have be some short covering ahead of the weekend.
There is not much to say this evening as we wait for trading to open in the morning. We are looking for continued weakness in the market over the coming months and recommend selling into all rallies that develop. If you have been following your own stocks over the past several months that this little rally has lasted, you have either noticed they haven't followed this up trend, they are weak indeed, or they have rallied with the market which means it's a good time to take some off the table. We will see how trading goes this week for more clues as to the topping process that has taken place over the past two weeks.
As far as the precious metals go and considering the gold bearish commitment of trader's report, we are getting very cautious this sector again. We have seen a nice run up but we don't want to lose out on some good profits. Let's see how they all trade on Monday to get a good idea of what we need to do. I have almost convinced myself to sell my position in PAAS on Monday especially if we get any strength in silver. I will keep you posted and report again tomorrow.
See you back here tomorrow.
Dow Industrials: 10,600.31 -85.58 (nearly back into the 10,500's)
BGEIX: 12.13
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