Friday, August 05, 2005
Yesterday's trading projects a correction in the broad market. So far however indicators on all counts are strong so unless that changes the correction should occur with a number of nice bullish divergences and should prove to not be a harsh correction. It’s early yet to predict. Gold stocks consolidated high yesterday and look to work on establishing a base of support for a higher move. We would prefer this to a quick and fast run up since such a run would only entice sellers to get aggressive. Slow and steady is our hope. Meanwhile, Thursday's oil weakness was just a minor setback in the trend it would appear. The XOI experienced another flat day, but several oil related stocks, including ENI, showed renewed strength. Going into the weekend here we suggest staying in the safe haven commodities; gold and oil.