HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.
Two things worthy of note:
First; the market continues to deteriorate. From last Thursday through Tuesday, it was down sharply 4 days in a row. Yesterday was a weak rally. Today the market started out positive, but the rally faded and the market ended down 74 points.
I have mentioned this point in several recent notes, and will emphasize it again. Note the low of early July=DJIA 9680 (see chart, next page). If this low is violated, and I believe there is a definite chance it will be, the market could drop quickly. Not only will people’s stop-loss orders kick in, but because this is an important technical level, there will be active short selling. Please be careful.
Secondly, the precious metals have been very strong. In precious metals bull markets, silver leads gold and the miners lead bullion. What I find especially interesting, and compelling, is that this is exactly what has been happening. Note the chart of Silver Wheaton (SLW, page 3). It took 4 tries, but SLW finally broke to a new high today. I would have liked SLW to close more toward the high of the day, but, in general, it was a good showing on reasonable volume.
Now what is critical is that there be good follow-through. By this, I mean that SLW continues strong, with the rest of the precious metals following suit. I suggest you watch GDX (Market Vectors Gold Miners, an ETF representing a basket of the major miners), GDXJ (the “junior” (smaller) miners) and the big one; GLD (see graph, page 4). I will have much, much more to say if (when) gold breaks to a new high.
RMD
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