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Friday, May 18, 2007

The Dow rose 80 points on expiration Friday. Advance/declines were positive and the volume was average. The market continues higher even with the summation index going lower. I can't explain it. Perhaps we are about to witness a melt-up. I really don't know. I do know that the divergences cannot last forever. But they can last a while. You cannot fight the price movement. There is so much money sloshing around that up we go, with evidently no end in sight. But it will end at some point. When, I don't know. It never ends good either. Gold was up around 5 bucks today and the XAU gained a point and three quarters. I think it's just an oversold bounce but what do I know? I don't expect gold to do much here but it is oversold. The best case scenario here would be to move sideways and form a bottom. I'll check the charts over the weekend but I do know we are at critical support for gold itself on the longer term. Mentally I'm feeling fine. Got a good nights sleep and did not make any trades this week as that was the plan. I'll be looking to do something for the June cycle. Perhaps after the Memorial day holiday weekend. Or who knows, maybe I'll just sit it out for a while. I'm waiting for a decent signal one way or the other. However the signals haven't really worked lately. It can be a frustrating game. Now it's time for the weekend, check the charts and come up with a new game plan...

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