Stock Tiger Update

For  Wednesday November 1, 2006  

Hello -

Dow -5.77 at 12080.73, Nasdaq +2.94 at 2366.71, S&P +0.01 at 1377.94

The markets today looked like they would make a deeper correction but once again the dip buyers stepped in and brought the market back up to about even on the day.

This was the end of the month and last fiscal day of the year for many funds so the late rally may have been the final window dressing. Gold stocks were pretty strong and generally that is not great for the broad market. The buying has not been as intense as it was and maybe the is only consolidation but it may also be a signal that we will see a bigger pullback.

Just a couple of weeks ago we were having 10-15 break outs on some days and we suggested that it was a bit much and could not last. Today we had only 4 new ones which is much more sustainable but those were nice moves.

We have some retail sales figures coming out and some other reports but the market may wait for larger moves until the elections are over.

The Dow is below the little trend line how we have drawn it and the stochastics are just under 80 so this could be the start of a pullback already.

The semis were looking very weak and ready to roll over but the last two days they have put in a weak bounce as shown on the SMH. The low volume suggests that they are weak and will drop again. This is an ETF can can be shorted.

We want the Russell 2000 to stay as strong as it can and it was not looking so good  but it is again near the top trend on this 15-min chart so maybe tomorrow we will see a break out?

Not showing the Nasdaq today but the BPCOMP could still make its May high.

Here again is the longer term gold weekly chart and it never yet made it back to the 65-week moving average and would like to see that.

On the daily chart you see it is trying to break above the trend line now.

The Gold Bugs 60-min chart shows the minor break today after a few days of consolidation and a move above 320 may run it up quickly. The top of the chart is the HUI.

The GDM gold miner index 60-min chart also shows a late day break out.

The XAU to Gold ratio chart still has not given a strong buy signal but we have had several nice gold stock break outs recently so today we have a 5 more to add to the watch list.

CEF at $8.60 (note the small gap also)

BMD at $3.75 the above $4.00 to the 200-day

BAA is one of the few gold stock that has been killer since the September low. The 200 and 50-day recently crossed over so now it has a new level to clear at $12.75

CEF is really a fund so moves with gold but has a level at $8.60

TGB above $2.60 to $2.65 looks good to go.

A couple other stocks to watch...KNXA above $33.00 ($33.38)

POTP is not the best set up but look at that volume. Still a buy with good volume over the 50-day now at $1.51.

FRPT is on the list already and actually today broke above the trend line a bit but the chart is an interesting one so show it again.

WFII we bought at the first break out so many likely still own it but the next level seems to be above $2.50 to $2.56

 That's all for now - see you in a couple of days.

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