Markets Continue Decline

Today I sold my gold stock potfolio--I am almost 100% cash in T-Bills-total gain on this trade about $10,000. Yes I know I am closing this position while the weekly close on th HUI remains above 320.

It was the market's worst week since the bull market began more than four years ago -- both in terms of percentage losses, downside volume, and bad breadth. All market sectors and industry groups fell. Every single market index closed below its 50-day average in decisive fashion.

The DJIA has closed higher in five of the past eight trading days, but declining stocks outnumbered advancing stocks in seven of those eight sessions. That type of negative breadth divergence has occurred only 15 times in 75 years – the majority of which were in bear markets.

On Monday of last week, the DJIA hit a record high while declining stocks overwhelmed advancing stocks by a 2:1 margin. That ominous divergence has never occurred in the past 75 years of market history.