Most stocks floated a bit up yesterday but the metals are where the buy the dip crowd hit the hardest. GLD dipped just under its 200 day moving average this week but buyers came in hard on Friday pushing the price back up above the line.
Treasuries were up a bit as were stocks, which (possibly) tells me both sides of the bull/bear argument were tentatively reinforcing their positions. Since we are still in a declared bull market, breakouts are still working. Stocks that pop above resistance points that are commonly identifiable to readers of certain newsletters and publications, are launching higher on the day of the breakout. Some companies have sputtered after and others have continued to move but at least for short term traders, buying breakouts has been a decent way to make 3% to as much as 20+% in one day on certain high fliers.
And I guess if that is happening, I don’t blame them for selling after.
At the time of this writing, I or my clients own the following investments mentioned in this column: NONE
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