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Wednesday, August 18, 2004

Dow up 110 points. Advance/declines more than 3 to 1 positive. Volume nothing special but you can't argue with the price action. Gold was flat but the XAU and NEM were both up again although not a lot. The expiration rise for gold stocks continues this month yet again. Oil was up but it didn't affect the stock market today. The next question will be, is the rally for real or just a bounce? It's had everything but volume so far. It is important to find the answer to this question because it will affect the trading going forward. It appears that we are about to break a weekly downtrend line on the OEX here. Other technicals point to a bottom here. I'll be leaning bullish unless something changes that view. No trades with 2 days before expiration. Looking out to September and October.

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