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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (1679)	7/16/2004 11:40:56 PM
From: Wade	Read Replies (1) \| Respond to of 48092

This is the right time to take a look at the market. USDX It continue its decline toward it 600-day linear regression target of below 84. It still have a long way to fall. Clearly, there isn't enough money to support USDX from foreign investors. It also indicates that USD is under selling pressure which means money is flowing to foreign currencies. It may also mean that foreigners are pulling out their investment from the US markets. Stock market SP-500 has been dropping since the 1st of this month. The news of weak growth of many sectors hit the the market almost daily. Tech sector (QQQ) is very close to its critical support at ~34. It may get a rebound. But, I feel the break down is unavoidable. Big stocks, such as GE and PG are good target for shorting as well, besides QQQ and SPY. Interest rate Both rates of 30 and 10-year treasuries have been falling since the 1st of this month. It tells us that there were plenty of cash are buying bonds that could be mainly from those who sold stocks. The yield could continue to drop if there is no sign of healthy recovery. The recent hike of Fed ST rate to 1.25% may proven being a mistake. CRB index It is completing it double bottom and looks like ready to test the recent high of 285+. We shall see. Oil & Gas sector has been a big winner lately. Gold and silver Silver behaved more like a commodity and moved very nicely. Gold stocks showed signs of recovery, however, they are moving very cautiously. Probably due to mixed market signals and the leftover fear from the big correction 2 months ago. Their trading volumes remain at about average. Money Stream increased very slowly in this sector. TC2000's MG135 showed a rising triangle which should break out within 2 weeks. Otherwise, we may have to be very cautious at that point. OTOH, I like the way the sector performed so far, because it gave me plenty time to adjust my positions. I remain a long term bull of golds. But, I feel that I need to readjust my positions if PGO doesn't break out $410 before the end of this month.