Week in Review 10/20 – DOW 12000

The talking heads were baffled that DOW 12,000 failed to excite Wall Street traders.  The professionals simply are not buying this new high.  How can an index reach an all-time high when 2/3 of its components are well below their all-time highs?  Microsoft, Intel, and GM are 47%, 72% and 65% respectively below their all-time highs.  The DOW is simply a flawed index.  Another non-confirmation from the semiconductors doesn’t help the DOW’s case.  The SOX closed down 5.1% for the week. 

The commodities side of the house was fairly quiet – trading sideways while holding on to last week’s gains.  Oil was the exception as it continued its pre-election spiral.

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

DOW 0.3% 12.0%
S&P 500 0.2% 9.6%
NASDAQ -0.6% 6.2%
SOX -5.1% -6.7%
GLD 0.4% 14.0%
GDX -0.1%  
CEF 0.4% 23.1%
USO -1.7%  
PHO 0.7% 17.2%
BRIC 0.1% 26.0%
BBO 0.8% 33.2%

SOX – Semiconductor Index
GLD – Gold Bullion Exchange Traded Fund (ETF)
GDX – Gold Mining Stocks ETF
CEF – Gold and Silver Bullion 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
PHO: Link

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