Safehaven | Sell Signals on Bonds and Gold

August 14, 2006

Sell Signals on Bonds and Gold
by Charles Meek

Dow Jones Industrial Average   11,088
Value Line Arithmetic Index   1,915
30-Year Treasury Yield (TYX)   5.09%
20+ Year Treasury Bond Price (TLT)   85.40
Gold 1/10 Ounce (GLD)   $62.71

The Big Picture for Stocks
The 4-year cycle calls for a bear market bottom in 2006.

Technical Trendicator (1-4 month trend):
Stock Prices   Up
Bond Prices   Down (New, See Below)
Gold Price   Down (New, See Below)

Markets
Our Technical Trendicator model has turned bearish for bonds and gold! We have caught the recent upswings in both of these markets for nice trading profits. But now the indicators are to sell. The chart below for gold shows what is happening for the yellow metal. I'm not sure I can analyze why these signals have occurred; I'm only going with the flow. Our Technical Trendicator is a trading model focusing on the 1-4 month time frame.

Special Situations
The positive trend for stocks is holding on for now. So we will be featuring 4 microcap stocks this week that appear to have extraordinary potential.

Update on TIPS
Since recommending the Treasury Inflation Protected Securities on July 9, values for these securities have risen approximately 1.75%. This is about 18% annualized. And this does not include any interest earned. I hope some of our subscribers got in on these when we suggested them. But it may not be too late. They still represent a potentially good diversification in a fixed-income portfolio. I consider these securities as core holdings irrespective of what the bond market does.

Regards,

Charles Meek
MeekMarketModels.com

Mr. Meek is a Registered Investment Advisor and editor of MeekMarketModels.com.

MeekMarketModels does not guarantee the accuracy or completeness of this report, nor do they assume any liability for any loss that may result from reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice and are for general information only . In making any investment decision, you will rely on your own review and examination of the facts and the records relating to such investments. Trading the market is extremely risky. Our suggestions are often very speculative and not suitable for many investors. Past results are not indicative of future returns. Meek Market Models, Inc.