In order to have a fighting chance, the market has to turn around from the edge of the abyss (aka recent lows) and finish strong. I will be watching 912 on S&P 500 as a very key level.
Many times I mentioned I did not like the action in gold stocks despite the punditry of the masses. In fact, we started this blog with a piece on gold stocks where I examined whether a bottom was at hand or not for gold stocks. Since then, I have been updating at times, and they have been falling. They are decimated today, again. AEM, my favorite short, has dropped more than 10% just today.
To have a healthy environment for any commodity, commodity stocks should act well. Tell that to the ultra gold and gold stock bulls.
Yes, I know, hyperinflation, stagflation, what-not-flation, Bernankee choppers and gold-to-the-moon. first off, gold may behave OK because of its monetary status while gold stocks may get creamed. Also, why should we buy things that make lower lows and lower highs? Some of these pundits scoff at those who try to pick bottom of general stocks, yet they all the time try to pick the bottom of gold stocks. Bottom picking is a dangerous game.
To each his own. AEM has been an astounding short for me this year. Things may change tomorrow, and we deal with tomorrow when tomorrow comes.
The only commodity that is doing well is Natural Gas.
Be carteful out there!
Now, let's see if the market can turn it around.
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago