Wednesday, July 11, 2007

Dow Stocks Are Stuck In A Range



The stock market rallied today making back some of yesterday's sell off. As you can see in the above chart the Dow Jones Industrials are in a 450 point trading range. Today's low in the dow touched the midpoint of this trading range.

I'm not sure which way the market is going to go from here but I will say if the dow can get back above Monday's high, I think that will be quite bullish and we'll see the dow breakout.

The only other thing I saw of interest today was that the foreign currencies were up again with the Swiss Franc making a new high for the year. I took profits today on half my position in all the currencies and I'll use a trailing stop for what I have left.

As far as gold is concerned, I'd like to see GDX dip just a little more so that I can begin accumulating a long position in some of these gold stocks.

2 comments:

sk said...

Hey Kevin, great blog! I have been reading it for a while, and you seem to be right on the money on most things!

One question for you: do you have any gold stock in particular in mind, or simply GDX ETF? I am long GLD, but I want to own some gold stocks as well.

Thanks!

Kevin said...

I'm not sure yet which stocks are like...I need to wait for a dip and then I'll see what looks good to buy.

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