Market Soapbox 06/13/05

From the hinterlands....all is well and the mission is so far a success.

As for the market, from 05/25/05 "The line in the sand has either; already been reached or could be at NDX 1590, SP500 1215, DJIA 10725." Highs so far in June: NDX @ 1569 on June 2nd; SP500 @ 1209 June 7th; DJIA @ 10578 June 7th. Not too far off from the previous projections.

The PPI and CPI could drive the market down a bit, Tues PPI probably has little effect, but Wend CPI could cause some mild consolidation. Not much volume in the market, summer time has come. This leaves the hedgsters and institutionals to manipulate the indices. Last week, even the conjuction of the 5 & 10 year note auctions with options expiration unwind had little effect on the market.

From 05/24/05: "Watch the gold stocks rising as gold prices stay flat or fall, this could be a signal that the Boyz in Bermuda Shorts are rotating into gold stocks, as they may be planning to pull their plug on the dollar after driving gold prices and issues down. That's why they call them HEDGE funds."

We have taken positions in Oil, Gas, Energy and Precious Metals Equities. These issues have been flying high since May 16th, just check out the XOI and XAU indices. Profunds Ultrasector Funds for Oil & Gas +15% and Precious Metals +12% during the period.

From 05/26/05: "On May 29th or June 1st , the dollar and market could get a huge boost. The French and Dutch are ratifying the EU Constitution by referendum on those respective dates." The dollar is at a nine month high vs the Euro, but precious metals equities are advancing as well. Beware of this contra action.

Perhaps the markets summer peak will be hit soon and this means July could be a down month. But we reserve judgement at this juncture and play it day by day. Keep your eyes peeled to the sky, as it could be a name brand that flattens you. Just my opinion, I could be wrong.

Comments

Anonymous said…
good to see the NayBob has resumed his post;great commentary-I sense a commodity melt-down this summer,but it's just a hunch at this point,and I'm not taking any steps in that direction,yet;........as they say...."whenever I'm on the continent,I allways stay at 'The Chip'," -Cheers