Sunday, August 21, 2011

No Where To Run, No Where to Hide

Actually this is not true but simply a way to introduce my thoughts on the market after this weekend review. There are plenty of places to hide and cash may the best but being short has been a good option lately …so has gold.

Speaking of gold, guess what has out performed gold for the last 6 months and greatly out paced the Dow?

Take a look at this chart here

Nothing against Sturm, Ruger & Company, probably a great company, they are profitable, they are paying a nice dividend, but it is sort of disgusting when it takes a firearms manufacturer to beat just about everything you can think of and soundly trounce the Dow.

Last week was pretty nasty for the Dow; take a look back at the opening drop on Thursday and no sign of a bounce on Friday (Chart)  

So what did I see in my weekend review?

IBD (Investor Business Daily) continues in their Current Outlook with: Market in Correction. 

Copernicus Systems continues to solidly point to the trend being “Down” and to be short.

The top performing ETF’s in the Copernicus systems were GLD (of course) and EWJ.

I have been noticing EWJ, an ETF for Japan, climbing in the rankings so I took a look at the chart. Nothing good here yet  (see chart), just better than the other ETF’s

Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)

AAPL - .08%, falling from last week to finally show a loss

ETF's for a trade are:

SH    +.32%
SH    +2.2%
SDS  +1.25%
GLD +4.46%
UGL +9.0%This after being badly down last week ( -7.08%) last week

So there are places to hide, such as funds that short the market and of course gold

I still believe there are opportunities ahead but that could take time. Many are seeing the worst of this downturn is yet ahead, perhaps we are just getting started in this downturn. One source points to October before we see a bottom. I will be watching and hopefully learning along the way!

Have a great week

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