Doubts about European bailout program plague markets, while gold reachs a new record

Stocks started lower, followed by a rally taking them solidly in the black. By day's end, Dow slipped into the red with selling into the close. Second thoughts about the European bailout package are giving many reasons to pause & rethink investments. Dow ended down 36, advancers over decliners only 5-4 & NAZ was even. On balance bank investors were nervous, the Financial Index ended in the red & nearer its lows than its highs.

S&P 500 FINANCIALS INDEX

Value 213.47

Change -1.03

% Change -0.5%

MLPs had sold gains. The index rose 3+, taking it back to the 299s after touching 302, an important resistance level. The REIT index added a fraction in the 213s. Junk bond funds made good advances, up 1-2%. The yield on the 10-year Treasury bond fell a tad, just a fraction under 3.54%. And the VIX, volatility index, slipped 0.64, in the 28s.

Alerian MLP Index --- 2 months




Dow Jones REIT Index -- 2 months





Gains for oil in the AM were shed in the PM. One of the biggest drags on oil is the worry that booming China may slow its purchases of oil, it's stock market is already in a bear market. Getting little attention, gold rocketed ahead to another record high taking out the previous highs made 5 months ago. That old adage was never truer, a small portion of the portfolio should be in gold.

CLM10.NYM

...Crude Oil Jun 10

...75.84

.. 0.96 ......(1.3%)

Gold

...1,233.20...

32.40...

2.7%

Gold Super Cycle!!!
Click Here

GLD (ETF) --- YTD





There are 3 main questions regarding the European rescue plan.

(1) Will Greece adopt austerity measures?
(2) Will Germany accept those terms & lend money?
(3) Will there be any more countries needing bailouts?

Markets showed their doubts today. In the meantime, BP is trying another option to plug one damaged well (out of 3) in the Gulf. Increased financial regulation for the banks is still out there, but the Senate has gotten bogged down & is letting it drift. The economy is showing signs of mending, but don't tell that to the 10% who are unemployed or 17+% who are underemployed. The excitement behind the announcement of the European rescue package is over, now reality is settling & that is keeping buyers away. At least, for today, GOLD is king!

Dow Jones Industrials -- 2 months

Get your favorite symbols' Trend Analysis TODAY!
Click Here

Find out what's inside Trend TV!!
Click Here