Starter Rally

Top Line: The stock market posted a surprise rally exactly as people have started to give up. These lows won't hang around long.

DT left us a comment for more pics and that's what we were working on tonight. This takes some time as the photo finger snapped about 750 pics with only a few worthy ones. But, more to the point, DT says she is going to be buying at the stock sale going on right now. Go, DT.

The prices in the market are compelling for many reasons, many of which we have detailed here over the past several months. Now that the market has "put in a new price low" which satisfies the Elliott wave theory, we can get more comfortable in our long positions; or, do as DT is doing and buy some more. We keep looking for more ways to buy these cheap stocks.

In yesterday's post we said we wouldn't be buying any GDX but today's price drop there brings the price down to a level that is getting interesting again. We see that it is just above its rising 50 day SMA and could easily bounce off that line. (Check Bigcharts.com and go to indicators and select the SMA 2 with 50,200.) The 200 day line is flattening and with another push above that line by the stock, it should start to turn up...very bullish. We are looking for a price at least as high as last year's high in the mid-50's.

Otherwise, we are now prepared to sit back and let the market go up. This is going to be more difficult for us to do than anything. As the market has moved lower, all you want is for some upside and now when you get it you have to resist the urge to sell into the first rally. There is much more to come over the next several months and we would hope that together we can figure out a good place to exit.

In case you were wondering, we will be early on the way out. We're much better bears than bulls so we will be getting into short positions too early and going through the same pain we've gone through over the past several months. Oh well, hopefully it will be after we have doubled our money.

We leave you with a couple more pics of Hawaii.

We celebrated Jackson's first birthday in Hawaii...too bad he won't remember.

Great cupcake cake.

Aloha to the cake...

Jackson can't wait for Mom to blow out his candle, that cake looks too good.

He's off to a good start...

Now, we're getting the hang of this cake eating thing.

Boy oh boy is that good!!!

Maybe just one more bite and that really has to be the last bite.