Sunday, June 3, 2012

Ominous News Continues

What else can you say when the DJIA (the Dow) continues to drop, now at 12,119. It is just Ominous.

This was preceded by a Friday close last week of 12455, that along with the things, I follow I labeled as ominous.

This week I read: “The indexes ended May with hefty losses. The Nasdaq lopped off more than 7% — its worst monthly performance in the past two years. The NYSE composite dropped 8%, while the S&P 500 fell about 6%.”

And: “Since 2003, a monthly loss in the Nasdaq of 5% or more has usually been followed by one or more additional down months.”

So what did I see in my weekend review?

The 10-yr Treasury yield is now at 1.47%.

It was noteworthy to read: “Investors stampeded into U.S. government bonds Thursday, driving the interest rate on the 10-year Treasury note as low as 1.54 percent, a record”

And:  “the record low rate beat the previous mark of 1.55 percent, which was set in November 1945. That was just after the end of World War II, when government price controls kept interest rates artificially low to preserve financial stability.” 

IBD (Investor Business Daily) continues to have: Market in Correction

Copernicus Systems: Is still calling for a short in the market, but still not completely  unanimously, which I should point out is rare.

Moneys flows are still down 3/3 and now the portfolio prices are in step – no divergences in price.

IBD 50 Top Five: 

LQDT, SXCI, ALXN, GNC, MLNX.   I make note of MLNX’s entry, but I also took a look at the chart of each, and all are pretty boring for top stocks.

Last Week:


Conversely some of the top stocks I see in the Copernicus rankings: ARBA, NTES and T …all look very nice.

 Currently my "Stocks for a Trade" now consists of:

None at this time

 IBD 50 Basket Holdings Are:

None at this time

 ETF’s for a trade are:
(All gains or losses shown are the total since purchase)

GLD (3) buys for -4.44%, up a little this week

SH +1.39% now positive.

SDS +2.75%

What will I do?

I did not add to SH , which I alluded to last week. Perhaps I will this week on an up-day. It looks like the levered market inverse SDS should be added to as well.

I hope you have a great week.

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