The Death March

We timidly held the lows yesterday in the Dow. The way the futures look this morning, we will probably see some downside from here. It may be time for me to add to the (DIA) position I bought last week. The decision for me here is to ask myself if there is a LOT more downside or if there is just a little. The problem is, I think we go much lower here. I think we can see a 6 handle on the Dow in short order.

I titled this post The Death March because that is exactly what it feels like. There is no panic in the market. The volume and the trade is very orderly. That means we will continue to head lower for the forseeable future. To call a bottom, we want people jumping out of windows. We want bulls to throw up their hands and give up. We want a bloodbath. We haven't gotten that yet. You need to see a huge volume day that heads dramatically to the downside before you can get in with both feet. It might be a while before we get that.

Knowing the direction of the market helps with any trade or investment. That's why it is important. You also need to know the direction of equities to understand where the capital is going to flow. With the choices investors have now, you don't need to buy individual stocks, hold them forever, and hope for the best. The investors who are going to survive are the ones who find trends of capital flows and get in on them early. Capital is clearly flowing to hard assets and that is where you need to be. Use ETF's to take advantage of this trend. Look at (GLD), (DGP), (SLV), (DBS), (AGQ), (PTM), and (PGM). These will get you exposure to Gold, Silver and Platinum.

Do not waste your time buying the stocks of the miners. There is plenty of money to be made in these ETF's. The miners have too many variables involved with their businesses and therefore too much risk. I will be back this weekend with a little more. Have a good weekend and until next time, stay low risk..