Nasdaq drops lower--broad markets fail to rally

Remember FCX and MER as leading indicators? Both P&F charts are bearish but the sector P&F chart for Precious metals remains bullish. Will the giant sucking sound be the sell off of gold and silver stocks as investors scramble to raise cash?






I have sold most of my broad market positions except for SWN and a few other oil service stocks. One signal is troublesome for the $HUI --I rate this as "Neutral"--but no sell signal yet for precious metal stocks.

So far support has held for $INDU but overall point and figure charts are bearish except for precious metals and oil and oil service sectors.
Today's Gold/XAU Ratio is 4.72

History of gold stock market performance during broad market corrections and crashes

While the Dow 30 shed 45% in 1973 and 1974, an enormous and devastating loss, did gold plunge in sympathy like it did is past April and August in the latest precious metals panic? "No!" Gold soared in a majestic and powerful bull market and more than tripled while the general stocks swooned. The curious popular belief today that precious metals will suffer during a general-stock bear is a total myth, pure fabrication. Adam Hamilton, CPA

So--Is this time different?

http://www.marketoracle.co.uk/Article1783.html

http://www.zealllc.com/2007/pmbears.htm

http://www.zealllc.com/2007/huistock.htm

TREASURY BOND YIELDS

an inverted yield curve usually means the economy is headed for a recession, as it did before the recessions of 2000, 1991, and 1981. So far the curve has not inverted.