Market Recap - Gold Rally, Junk Bonds, and Brazil Breakout

The major indices closed higher today with the only red mark on the screen being the price of oil, which lost 1.8% and closed at $106.60/barrel. The Dow gained 0.2%, S&P 500 0.3%, and the NASDAQ led the group with a 0.7% gain to a new 11-year high.

GOLD RALLY - Gold gained another 0.7% to close at $1786/ounce and could be well on its way back to the test the $2000 level. I believe it will occur at some point this year, giving the metal another 12% on the upside before that occurs. The SPDR Gold ETF ($GLD) gained 1%, but the real story was the 4.7% surge by the iShares Silver ETF ($SLV). Gold's little cousin is now at the best level since mid-September and is up 34% for the year.

** My firm owns shares of $SLV and $GLD

JUNK BONDS CHUG ALONG - The SPDR High Yield Bond ETF ($JNK) closed up 0.4% and is at the best level since early August. In the beginning of the year I made a call that I would rather own $JNK over the S&P 500 ($SPY). So far the $SPY is up 9.5% and $SPY is up 5%. I am not giving up, it is a long year ahead and when volatility is taken into consideration, $JNK is not trailing $SPY by that much.

**My firm owns shares of $JNK

BRAZIL OUTPERFORMING - The iShares Brazil ETF ($EWZ) closed up nearly 2% today to finish at the best level since early August, outperforming its emerging market peers. The ETF is up a whopping 22% for the year and still have plenty of room to run to get back to the 2011 highs. Two often overlooked Brazilian ETFs are also having solid years. The Global X Brazil Consumer ETF ($BRAQ) and the EG Shares Brazil Infrastructure ETF ($BRXX) are up 30% and 23%, respectively. In an interview I gave to Investor's Business Daily (IBD) my top ETF pick for 2012 was $BRXX.

**My firm owns shares of $BRXX