Resource Stock Update - V14 #8.2 - Markets, NKE, HXD, GEA  - July, 15, 2008

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                                                        Markets

We may be near a temporary bottom in this on going bear market. The S&P 500 has basically been
falling for six straight weeks and with a reversal from a new low today the chart might be forming a
hammer and an up day tomorrow might form a morning doji star. We will see - but a strong reversal
pattern.

News has been very negative, barometers like the VIX (volatility index) went over 30 today, in a
range where we see bottoms. Volume on the Spyder (S&P 500) has been high. Gold has been moving up
strong, with the next challenge on the chart being the old high over $1,000.  But gold was up $13 or
$14 this morning and then reversed and gave back all of those gains and some more as of this writing
around 1PM.

Crude oil has also retreated again from the $145 area and is down over $6 today.

The senior and mid size gold producers have been moving up with gold and were up again this morning,
but are selling off this afternoon, after 3 days of big gains that seen them up 10% to 15%

The HUI (Gold Bugs Index) is up against it's next resistance around 470/480. It needs to go through
this and past 520 for the gold stocks to confirm a move in gold back over $1,000, but it looks like
it is retreating.

All these things point to a possible short term bottom in this latest bear move for the major market indexes. It may also be a short term top for oil and possibly gold, although I expect gold has the best chance of continuing higher in the next few weeks.

This reversal or bottom may only last a few days or a week, we will know better by what the charts
say over the next couple days.

Nike  NY:NKE                                  Recent Price $57.25
Entry Price - sold short at $68                Opinion - Close Put

Regardless, I think it is a good time to close the Put option on Nike, the July $65 Put is around
$8.00 for gain of 200%. There is not much time left and the stock has performed surprisingly well in
this poor market. It tested resistance in the $53 to $55 area and has bounced back up today

http://www.stockhouse.com/comp_info.asp?symbol=NKE&table=LIST

Horizon BetaPro TSX Bear Plus      TSX:HXD           Recent Price $19.70
Entry Price $21                          Opinion - sell

I am also going to use this point in the market to sell or close out one of our other hedges, the
TSX Bear plus - HXD. We did take part profits in April at $25 so by selling the rest today we will
have a small profit. My idea is to re-establish the position at a lower price.

http://www.stockhouse.com/comp_info.asp?symbol=HXD&table=LIST

Gold Eagle         TSX:GEA                 Recent Price $10:45
Entry Price $4.75                Opinion - take part profits

A couple weeks back I mentioned to take part profits in GEA into strength over $9.25 and speculated
the stock may go to around $10 if it's current uptrend pattern continues. The stock is up $0.45
today, so a good idea to take part profits. Be sure to hold some for the long term

http://www.stockhouse.com/comp_info.asp?symbol=GEA&table=LIST

(c) Copyright 2008, Struther's Resource Stock Report

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