Thursday, October 11, 2007


The false rally continues. I recommended buying BAC (chart) and SLV (chart) last week. BAC is underperformed the S&P500. SLV on the other hand is up 4%. The S&P500 is up 1.5%.

The more the Fed talks about lowering rates, the more SLV (and GLD which I don't own but recommend nonetheless) gains. I am still bullish on BAC.

I advised buying puts on FXI (chart) at $190. It fell to under $180 and anyone who bought puts made about a 40% return in a very short time....if you sold. FXI is now in the $200 range and it's once again put buying time.

And how is the dollar doing? Prognosis not so good.

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