WEIRD WEIRD STUFF

The markets today are wierder than ever and maybe giving some gifts. The DJIA is higher by 76, NAZ lower by 7, IWM -.5%, QQQQ lower by 10 cents, OIH lower earlier by more than 4 bucks and is now almost unchanged, Gold and Silver are crushed and the XAU and the HUI are both lower by about 5%.

On realmoney.com Jimmy is bullish on the metal stocks and I quote:


"Pause that refreshes in minerals and mining? I think so. I think the swoon will last a couple of days and then start all over.

My confidence is based on bizarre stories like the hoarding of gold in Iran, or the max-out by OPEC, or the fact that China is in the U.S. right now basically to say, "We are going to take your jobs away and make more things than you would ever believe, and those things need aluminum and zinc and copper."

Sure wish they would mean glass, as in Corning (GLW:NYSE - commentary - research - Cramer's Take), but they are still too underdeveloped to go there.

Meanwhile, let the other stocks have their day. Let the leadership broaden.
The minerals story is an unfortunate one. Every time they go up, we can expect to hear the talking heads talk about inflation. The reason that is unfortunate, though, is that the real rate of stuff we need, other than gasoline, isn't going up. Food, clothing, rents, homes -- they aren't going up. And despite Nissan's admonitions, the price of a car isn't going up, either.
That's why I remain bullish on this market, and want to buy weakness in minerals whenever I can find it. "

I think Jimmy is on to something here and I agree, buy the pullbacks in metals. Bull commodity markets generally last 10 or 15 years so my bet is that we are still early in the cycle and I will be scaling into metal stocks starting today.