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Friday, August 27, 2004

Dow up 20 points with advance/declines over 2 to 1 positive. However as has been the case lately the volume was pathetically weak. Even lighter than it has been. Which, for me, calls this whole rally into question. We are at resistance on the Dow at 10200. I don't see a lot of upside from here without some kind of pullback. Gold was down over $4, to the 402-403 area which is support. It must hold around this level or lower prices are in order. Even with gold down the XAU was up a point. That is bullish in my opinion for the gold shares. ABX was up 30 cents on decent volume but NEM was up a few cents on light volume. I am still holding on to the higher gold price scenario. Perhaps this week was the pullback to the downtrend line we broke through last week. We'll find out with next weeks action. Predictions are for a slow market with not much participation due to the Republican convention in New York. Time will tell. There is the employment report on friday. I'm still thinking about a trade in GE down the road here and I'd like to pick up some NEM calls also. Summer is winding down and things should get more interesting in the weeks ahead.

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