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"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.

Agnico Eagle, which I bought at the opening, was also up for the day, and in fact unexpectedly jumped at the opening. It's a pretty pure gold play with no hedging. Another stock to consider is GoldCorp.

I know about Beacon.

the fed is apparently contemplating preemptive action.

What do you think this might be ?