The GLD - KaChing!

Well, I got stopped out of my PEIX trade for a 2% loss. No big deal, the GG and SLW trades are more than making up for that and seem like they will continue. Gold was up today, on a day where everything else was getting battered. We are back in major rally mode for the metals and my trades will follow the metal's rise. Today, I noticed that GG and some of the other gold stocks were down while the GLD was up, which to me says that the markets believe the leverage associated with owning the company's rather than the metal will not pay off as much (i.e. a short-lived rally). I'm not buying it. I expect to see GLD at it's early May highs by September. I'm heavy in the metals now with tight stops, but I think they should be safe. I'm thinking tomorrow could be a big day for the stocks and the metal based on today's show.

Anyways, some other ideas I'm contemplating...SNDK is a good company that has been battered but I'm not sure the battering is done given the broad market weakness. SHLD is a very good company that would be very attractive on any pull back and is an excellent long-term holding.

Great article on Barry Ritholz's site... http://bigpicture.typepad.com/comments/2006/07/making_insider_.html#comments