[rohry]

"We are still in a bear market no matter what kind of spin comes out of Wall Street. The current rally is nothing more than a minor reversal trend in a primary bear market."

[rohry]

Market WrapUp is delivered...

[RightWhale]

Possible early warning: Shares of VFIIX, a Ginnie May fund, have dropped in the last few days, reversing an upward trend of several months. Don't know that people are pulling their money out, but there was quite a rush into this the past year.

[Cicero]

I agree. But I hope the current uptrend holds for another couple of weeks.

Gold is in a primary up-trend but currently is in a secondary down-trend. It hit the resistance at $330 and recently broke through the minor support at $315. I just went back into gold stocks in a small way again this morning, after selling when it was up around $328, but it may still be a bit early to get back in.

Long-term bonds have taken a big, quick hit after trending upward nicely for the last few months.

[David]

"The Dow Theory is still widely followed today with Richard Russell its foremost proponent." In his last week letter, Russell opined that the current down trend had bottomed and that we are now in a secondary uptrend with the primary bear down trend to renew at some point in the future. Today's sell off was a minor event, probably qualifying in that view as a profit taking.

"Long-term bonds have taken a big, quick hit after trending upward nicely for the last few months. . . . No big news happpened today." There was in fact some big news today but it is still hidden--an entity I believe is called "Beacon Hill Asset Management" has a large underwater position in bond futures that is no longer supportable and and it has commenced liquidation of a very large Treasury bond portfolio--the events may be sufficient in size to have an impact on the Treasury bond market in the near future--the fed is apparently contemplating preemptive action.

As an abstract technical analysis proposition, gold should have continued to trend down today taking the gold stocks with the metal to the $308.50 range--although some of the stocks were in fact down, Newmont was up significantly as was the metal. I don't view the down in the equities as having been sufficient to account for the uptick in gold and I am a little suspicious that something is in fact up of more significance than we currently read in the financial press. Maybe this bond fund issue; maybe terrorists; maybe something else.

[Professional]

Thoughts on utilities? Considering how maimed they've been, and their respective monopolies, shouldn't they be a potentially lower than usual risk with high upside?

Would appreciate feedback before I bury my clients.

[gabby hayes]

Just one problem in this thinly-veiled precious metal advertisement. Why follow the PM path when manipulators seem to be able to operate with almost limitless, unaudited funds? Sure the rally is bogus, but the cabal still has the ability to hammer gold at will. From l987 executive order authorization for government/fed intervention in the market to soften precipituous plunges, it's an easy and tempting step to growth accentuation, especially on the eve of an important election. The stakes are simply too enormous.
Now derivatives sound like an interesting venture. Certainly can't be any more mysterious than the market machinations involving gold.