Week in Review 10/6 – Talking Heads Celebrate

The CNBC talkingheads got their all-time high on the DOW this week.  Remember the saying those that can can and those that can’t teach.  The talkingheads couldn’t turn a profit on a CD, so that they just blab about it on TV.  The professional traders continue to raise doubts about this rally.  First of all, the DOW is a poor barometer of the stock market.  It is composed of only 30 companies versus 500 in the S&P.  The S&P 500 is still about 13% off of its all time high. I hate to buy into to conspiracy theories, but this one is too obvious – Dow Manipulation

Commodities and the stock market historically are 180 degrees out of phase.  Stocks had their glory between 1982 and 2000.  The next decade belongs to the commodities and stocks of companies that produce and explore for commodities.  Unless you are technically inclined, the following article will be complete gibberish to you.  Just read the conclusions and you will have a better appreciation for my perspective.  

Below are this week’s results of our regularly discussed stocks:

  WEEK YTD
DOW 1.5% 10.6%
S&P 500 1.0% 8.1%
NASDAQ 1.8% 4.3%
SOX -0.7% -5.9%
GLD -4.2% 10.5%
GDX -3.6%  
CEF -3.8% 18.8%
USO -4.3%  
PHO 1.4% 12.8
BRIC 0.2% 20.8%
BBO 0.8% 25.3%

SOX – Semiconductor Index
GLD – Gold Bullion Exchange Traded Fund (ETF)
GDX – Gold Mining Stocks ETF
CEF – Gold and Silver Bullion ETF
USO – Oil ETF
PHO – Water Resources ETF
BRIC – basket of 4 country ETFs: Brazil, Russia, India and China
BBO (Big-Build Out) – basket of 12 stocks critical to the industrialization of BRIC

Refer to the following links for more information on above stocks.

GDX, CEF: Link
USO: Link
BRIC, BBO: Link
PHO: Link

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