Thoughts on Markets

Monday, July 26, 2010

DOW & Transportations Exceed June Highs - Gold Silver Ratio is 65 to 1

Dow exceeds June high and looks to be headed upward. The 50 Day MA remains below the 200 Day and the volume was low, but it is a strong move.

The DOW move was confirmed by the Transportations which also reached a high above the June high. Thus, we would expect both to move higher in the near term. The volume was also low, the Transportations were well above both the 50 and 200 Day MAs. Another strong move.

The Baltic Dry Index of shipping has been strong the last few days, as well.

All in all this was a strong upward day for the general market. The only real detractors were the relatively low volume.

Gold finished down 7.60 at 1182.10 and silver up 0.06 to 18.18.

We may see some buying opportunity in the miners in the near future. FVITF and HL are holding up quite well. Silver is still lagging behind gold with the gold/silver ratio at 65 to 1 when the historical average is 16 to 1. One of these days silver will catch up, but that seems to be a bit far off.

We will have to see what the Lord brings to us tomorrow. Have a great evening.

Best to each, Doug


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