Market Wrap
Week Ending 6/20/08
Stocks
The stock market had another tough week, with the S&P 500 down just over 3% or 42 points to close at 1317.93. Another leg down has started with a test of the March lows likely.
All is not gloom and doom within the economy, however. There are sectors that are doing just fine: oil, natural gas, commodities, precious metals, and agriculture.
Some the largest and most important sectors are getting decimated: financials, banks, brokers, real estate, and mortgage related businesses.
With the financials and real estate sectors down and out for the count, it is impossible for the overall market to forge ahead to any significant or sustainable degree.
A bear market is wrecking its havoc upon the market and one would be best served by stepping aside. Cash that assures the return of your money is better than trying to get a better return on your money at the present time.
It is better to retreat and leave the field to survive to fight another day, then to go against an overpowering opponent. Bear market funds are about the only alternative, and my portfolio has a large position in one: Rydex Ursa.
The entire portfolio can be viewed on the website under the bulletin board section of the site. Click on and follow the instructions.
Gold
Gold had a good week closing up about 3.5% and over $900.00. This move still has room to run to the upside; however, it does not look like this is the start of the next intermediate term rally. As of now it is a short term move.
Price has moved just above its upper trend line and looks ready to break out to the upside. RSI has turned up, with a positive MACD cross over. The histograms have moved up into positive territory as well.
Silver
Silver had an even better week than gold, moving up 5%. Silver stocks, however, did not keep pace with gold stocks, and neither stock kept up with the physical metals, which constitutes negative divergence.
Silver has broken above its upper trend line and its 50 day moving average. RSI is headed up and MACD has made a positive cross with the histograms turning up as well.
Invitation
The latest full-length version of this week's market wrap is available only my web site, including all positions bought or sold this week.
There are many more charts available, including some of the best performers in the precious metals and other commodity markets that are in my portfolio. I have also started accumulating a new foreign currency position.
All buys and sells are listed daily on the site, with a weekly update of the entire portfolio. These are not recommendations to buy or sell, they are simply stocks that I have bought or sold during the week, as well as stocks still held in the portfolio.
Stop by and check it out. Most major markets are included with the emphasis on the precious metals market.
There is a lot of information on gold and silver, not only from an investment point of view, but also from its position as being the mandated monetary system of our Constitution - Silver and Gold Coin as in Honest Weights and Measures.
On the main homepage are papers and articles by some of the best out there to be had. There are audio and videos on banking, the Constitution, and cutting edge news. Many articles are archived and others are linked.
Live time quotes on gold and silver and precious metal stocks are available, including charts for most world currencies and futures.
Links to the World Bank, Central Banks, the International Monetary Fund, the United Nations, the Bank for International Settlements, and many other similar and different sources are available.
There is also a live bulletin board where you can discuss the markets with people from around the world and many other resources.
My new book - Honest Money is now available on site.
Good luck. Good trading. Good health, and that's a wrap.
Come visit our website: Honest Money Gold & Silver Report
New Book Now Available - Honest Money
