The market ended mixed again on Tuesday as Tech failed to rebound from its morning lows. We mentioned yesterday the Energy sector was showing some strength and it ended the session higher by 0.4%, on average, but Silver was the standout as the metal had a sizzling session.
Silver soared 75 cents and closed at $30.31/ ounce, up 3.6%, while gold gained $17, or 1.7%, to settle at $1406/ ounce. We have been following shares of Pan American Silver (PAAS, $40.87, up $1.52) for a while and at the end of October here were our thoughts (quotes from that day):
“For the long-term, any dip could be viewed as a buying opportunity for almost all of the precious metals and we like silver as well. The iShares Silver Trust (SLV, $24.17, up $0.17) are the way to play this metal and we are looking at some options on this one as well as Pan American Silver (PAAS, $31.92, up $0.58) which hit a fresh 52-week high on Friday.” (NYSE:END)
PAAS has been on our Watch List off and on over the last 2 months but we always seem busy with other trades.
The last week of trading to end a calendar year is normally bullish and although we haven’t seen a surge to the upper-end of our targets, we are getting close and we still have 3 days of trading. Volume was once again light but the push after midday was encouraging to see as the bulls keep the momentum in play.
Our yearend target for the Dow has been 11,600-11,700 and the index added 20 points on Tuesday to close at 11,575. The blue-chips rallied to a high of 11,591 before pulling back in the final minutes of trading but we can feel a breakthrough.
We are looking for the S&P 500 to break past 1,260, for a possible run up to 1,275 by Friday. The index traded to a low of 1,256 and a high of 1259.90 but ended the day less than a point higher. Again, another tease.
The Nasdaq stayed in the red all day as it gave up 4 points to settle at 2,662. We said a few weeks ago the number to watch for the Nasdaq would be a break and close above 2,660 and the index is resting at support. We still have a shot at 2,700 by yearend, with 3K coming into play in 2011, if the rally rolls on.
As we head to press, futures are up slightly, and we have a lot to cover in our Members Area. Subscribers, check for the updates.
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