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Thursday, July 22, 2004

Volatility has returned.  We ended up down over 100 points yesterday.  The Dow was up 4 points today but was down around 60 at one point and up over 20 at another.  Advance/declines were negative.  The volume has picked up in the last couple of days.  The summation index has rolled over and is heading down.  Usually this means lower prices.  But it was going up through most of the recent decline.  Gotta believe that the market will trend lower though.  Gold was down a couple bucks today.  NEM and the XAU were marginally higher though.  We are practically at the short term uptrend line.  A decision must be made as to the purchase of calls.  Some of the technical indicators are oversold here.  This has been the area to get long in recent months for profits.  How long can it go on?  I don't know.  I suppose I'm willing to try it again.  Today might have been the day.  Still over 4 weeks left on this option cycle.  Would like to see a few days of sideways activity in the gold stocks to form a better base.  But you can't have everything I guess.  Will try to wait until the beginning of next week. 

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