Monday, May 04, 2009

A Very Good Day

Top Line: Monday was a good day. The market is in a strong move and should continue for some time.

With gold over $900 Again, GDX performed well, up about 6%. The rest of our portfolio was up, too, with coal being the major winner of the day.

There is little to say this evening as we go vertical in this rise. Recognition should hit the stock market as it did in many of the commodity names on Monday.

We have been trading over the past few weeks but we think the power of this rally should be significant and we may stand pat...but then again, we are traders at heart. We didn't sell anything in this strength today so maybe we have made a slight error in the short run. Only time will tell.

We started our last post with a flat line until the employment report on Friday...but we always need to say in this environment, "Surprises to the upside". As the market goes up, people are still not convinced that more is coming. Soon, many will believe and pile in pushing prices up. The media is still skeptical which keeps us strongly bullish as we have been for quite some time.

On Monday the VXO, volatility index, closed at its lowest point all year but it's still a chunky 34+. While there could be a drop in the market, we would expect a bounce in this volatility index to keep us bullish. We don't really want to think too seriously about selling our stocks (other than our trading positions) until the VXO gets into the low 20's and even then, we would just be thinking about selling them.

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