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Monday, August 27, 2007

The Dow lost 56 points today on summer Monday light volume. Advance/declines were 2 to 1 negative. The overall market was weaker then the Dow. My OEX puts gained a little ground but I still think they need to be dumped this week at a loss. Bernanke is speaking on Friday and I don't think I'll wait that long. But who knows? Gold lost a little over a buck today and the XAU shed 3 points. Can't explain the weakness there except perhaps an overbought condition. ABX lost a buck on light volume. GE lost 40 cents on light volume. And that is part of the problem here. The volume has dried up. There really is no conviction one way or the other. My thinking is that the decline has ended but that could be wrong. Was today the beginning of the retest of the lows? Time will tell. Volatility has come back down and that will depress option premiums. So there are a lot of questions that need to be resolved. Mentally I'm feeling pretty good. It is the last week of summer. All the players will be back after Labor day and we'll get back down to business...

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