Monday, May 14, 2007


The indices opened strong but got progressively weaker throughout the day though they did manage the rally a little into the close with the Dow finishing green yet again. The all important CPI number is out tomorrow. Probably a good day for some traders to position themselves on the sideline. This rally has been going on for quite some time and a pullback to below 13,000 on the Dow will not be unexpected.

I used todays market weakness to go long stocks I've been watching for some time. I decided to add LVS SBUX and ZUMZ to the fund. The first two are solid growth companies that look relatively oversold while the latter is a retailer which appears to be very popular with Gen Y.
I was also considering adding to my GRZ position though I will wait for this junior miner to settle down first. $6 does look very tempting for a $250 mil market cap company with a couple of billion dollars in gold reserves.

Tomorrow is going to be all about the CPI number. If it comes in too hot meaning above 0.6%, we could see a sell off.

No comments: