The stock market has been dropping for the past week. Gold stocks have taken quite a hit. We are starting to see real bargains in the precious metals. Stocks like PAL and CDE are reaching lows not seen since 2009. I think the technicals say there is still much chance for the stocks to drop more. The stoichastics show the weekly and daily are at lows, but we have been rising for quite some time.
For those that like to play it safe, it might be a good time to get in some conservative long-term holds. Pfizer, PFE, and AT&T, T, offer nice dividends for those that do not need money right away and are willing to wait for the stock market and the economy to improve. I would not be in the boat to be shorting stocks right now unless you’ve known of stocks that have risen too high as of late.
Looking at the SPY, we’ve only hit the monthly low of the stoichastics about once every two years. It looks like the SPY might drop down to the 102 or 103, but from there on, it should be time to start buying and looking into long-term stock plays. The market will improve. The government has put too much cash in it for it to drop to march 2009 lows.