Friday, July 1, 2011

Stocks up, metals mostly down

7:24 am (Hawaii) Rise and shine. It's cool and cloudy in Honolulu, good sleeping weather. The market is up: Dow +143 points (+1.1%), Nas +36.42 (+1.3%), S&P +15.05 (+1.1%). AAPL is up $5.41 to 341.08 (+1.6%). AMZN up 1.9%, BIDU up 1.4%.

Financials continue to lead the market. Every bank on my Debt Spiral list is up except IRE (flat). NBG is up 4.2%, SCGLY +3.3, Citi +3.2%. In effect, this week has been QE3 Effect week. The $25 million purchase of Treasurys was, arguably, enough to tilt the scales in favor of the bulls. Maybe the news about China attempting to buy more Treasurys while bending the "rules" was a factor. But the result is the Dow is up hundreds of points this week, while volume is below par.

While my Regular watch list is 63% green, my Metals list is red. 28% green, 70% red. The beatdown in silver began in the middle of the night and ZSL is up 5.7% to 20.07. DUST, GLL, DZZ are all up at least 2%. Oddly enough, XG is up 1.5% to 13.00, an all-time high. (XG is one of the miners that Sprott has been buying up recently.)

AGQ, NGD, FSG, NUGT, EGO, TWM, SLV, EXK are at the bottom of the list. Quite ugly on the whole. I remain almost entirely in cash, with small positions in DGP and physical metals. I missed this run, but I also slept well. With a three-day July 4th weekend ahead, I expect shenanigans to the hilt from Comex and all the puppet masters. The long weekend and summer doldrums are why I limited my physical buying this week. If we get a major discount on Tuesday, I'll be ready.

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