Top Line: The stock market rallied nicely on Thursday even though it could have really rallied based on the moves in Asia. Tonight the world is taking a breather from the big rally that started on Tuesday.
With that, the Update is taking a breather tonight, too. There isn't much to say tonight and the world is resting, getting ready for the weekend.
Here is our current position:
Bullish on stocks, Dow heading back up to five digits soon
Bearish on volatility, VXO going back down to 25 or less
Change in our Gold position...Gold may have bottomed near $680
Now Bullish on Gold, buy pullbacks, do Not chase...we'll set a four digit high target later
Bullish on GDX, target 50 (or higher)
Bullish on BGEIX, target about 25
Don't forget to buy some silver...$10 now going much higher.
PAAS may be in play again too around 10.
Still Bearish on US Residential Real Estate, no real target
Bullish on US Dollar, target 90 (back to rallying, now over 80 again)
Dollar made it to 88 and we said it would back off since it rallied so hard, backed down to 83
Dollar probably has a lot more to go up but not at the moment...we'll go neutral for now
Bearish on Treasury bonds but will take No position