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Wednesday, April 13, 2005

Never got it going for the Dow today and it just kept going down. Not a good sign, off 105 points. Volume was heavy and the advance/declines were almost 3 to 1 negative. It could be option related or we could be in trouble. Either way it is not a good sign. GE was down about half a point also and all eyes will be on Friday morning. I think I'm getting out of the May calls no matter what happens. The market just can't get going. Gold was little changed but the XAU lost almost 2 points and closed beneath the weekly trendline. We need a Friday close at 91 or above or that will be it for the gold shares. I added another 15 contracts to my NEM June calls at the same price as yesterday. NEM was down around 40 cents. I canceled the open ABX order for July and now will wait for Friday. The dollar was little changed also. It doesn't look like the weekly trendlines will hold for the XAU, gold or the dollar at this point. But nobody ever wants to step up when they have to. If these lines hold this is the time to take positions. That said, the overall market conditions are bearish and that doesn't bode well for the future. The year ending in 5 theory could go out the window. We'll see what happens tomorrow...

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