Update: The Armageddon portfolio continues to outperform

Will panic selling resume in the stock markets following the Labor Day weekend? No doubt, this is a difficult market to invest in.

Our favorite model portfolio continues to be the Armageddon portfolio published by FidelitySignal. See their report at http://fidelitysignal.com/aug_2011.

 

Gold stocks break out of trading range

We’ve been tracking gold stocks for some time and the breakout happened today, following a 3.02% move in the gold bullion (GLD).

SPDR Gold Shares (GLD) up 3.02%

SPDR Gold Shares (GLD) up 3.02%

The Fidelity Select Gold (FSAGX) fund is up 1.64% today and broke out of its trading range

The Fidelity Select Gold (FSAGX) fund is up 1.64% today and broke out of its trading range

On the move: gold stocks are up in a weak market

Gold bullion (see the GLD ETF) broke above the already steep uptrend resistance line and accelerated to a break-neck speed.

The uptrend of the SPDR Gold Shares (GLD) ETF is accelerating.

The uptrend of the SPDR Gold Shares (GLD) ETF is accelerating.

The Fidelity Select Gold fund (FSAGX) closed up 2.19% on Friday and was the best performing sector fund. However, the price pattern of FSAGX shows divergence compared to GLD. FSAGX will need to break above the April highs to resume its uptrend. It is also possible, that the divergence is an early warning, which signals that the speculative bubble in gold bullion will not continue on the long term.

The Fidelity Select Gold fund (FSAGX) is up in a weak market, but still in a trading range.

The Fidelity Select Gold fund (FSAGX) is up in a weak market, but still in a trading range.

The Medical Equipment fund holds, but the Real Estate fund takes a dive

The Fidelity Select Medical Equipment fund (FSMEX) is one of the few funds finishing higher today in a weak market. Although the fund is above it’s 100 day moving average and one of the strongest amongst sector funds, the price pattern has not turned bullish yet.

The Fidelity Real Estate fund (FRESX) is down 2.63% after the close. Real Estate Income (FRIFX) is weakening too, but still stays in uptrend.