Rasors be damned. Systems stop taken out.

Posted on Aug 02, 2010 by in Letters

Screen shot 2010-08-02 at 8.16.33 PM

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=1&mn=0&dy=0&id=p03149889863&a=204730441

While there are still razors all around us today’s action tripped the Basing Point Stop signaling a buy in the indices.  We bought the Dow, S&P and Qs ETF s and closed our gold hedge.  The buy signs were all over the place in just about everything.  We will cover them tomorrow morning.  In the meantime we think the contrarian backbone may be broken and the bull market may be back on.

As always only time will confirm this but we never ignore a systems stop.  And you shouldn’t either.

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