Today

• Update only. The environment over the past month has been difficult with a down market. The market has also been quite choppy with low volume trading. The portfolios have cash on the sidelines ready to deploy if an opportunity is determined.

This week

• The Fed hikes the discount rate but the key Fed funds rate remains unchanged. Stocks rally.

• Stock cycles still pointed up into March/April but must overcome resistance above.

• Bonds fell for the second consecutive week on the Fed discount rate hike. A potential head and shoulders topping pattern looms on the market. Key neckline levels are just below.

• Gold is rising again and was up despite the Fed discount rate hike and more IMF gold sales. Positive reactions to negative news is positive going forward. Stocks remain very undervalued in relation to the price of gold.

• Energy prices also rose on the week but remain caught in their box formations of the past few months.

This Week

• Update only. While the market may be trying to find a bottom here it is a difficult environment to be adding to positions. Holds only.

Short commentary only. No charts as we were away over the weekend.

• Reversal seen on Friday following panic selling on Thursday. Could be signal for short term bottom.

• Gold stocks put in a reversal up week. Panic selling seen on Thursday and completely reversed on Friday.

• Story of the week was PIGS (Portugal, Ireland, Greece and Spain) and trouble in Euro land.

Updated Stock Picks

This week

• S&P 500 falls for the third consecutive week. January closed lower so the January barometer is suggesting a flat to down year.

• Strong economic numbers for the 4th quarter steadied the recent bond rally. As well bonds hit a resistance zone. Key is to watch what next. A failure here would be negative going forward. This Friday is the employment numbers.

• Gold and silver fell once again but the commercial COT for both metals saw a sharp drop in short open interest and new long open interest. The US$ was up in conjunction with gold down but here also the commercial COT for the Euro saw a sharp jump in long open interest. The commercial COT is suggesting that gold/silver could be making a low and the US$ a high.

• Oil prices also fell in conjunction with the rise in the US$. But cold weather and withering supplies should steady any decline.