Market Update

All of the major indices closed in the red, albeit slightly. The market traded all day essentially on a flat line. As the market approaches resistance levels the intensity of the move is wearing thin.

Gold is still the investment of choice for many and continues to make excellent gains. Recall our post from August 17th ( http://www.rebeltraders.net/2007/08/update_7679.html )
where we went long on GLD for the falling dollar that we saw coming. That trade remains active and we will advise when we close it. But for now we do not see any changes in the declining economic conditions so Gold continues to be bought up as it is becoming the preferred "lock box" for safe keeping ones money in a declining economy.

Update

I talked about what would happen to the US dollar and Gold if the Feds cut. Although the Feds only cut the discount rate Gold is already heading up on the belief that the Feds will eventually cut the overnight rate before 2007 comes to an end.

I am going to add GLD to my long term portfolio this morning as I expect Gold to up significantly by the end of the year.