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:
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.