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Wednesday, December 05, 2007

Back to the upside as the Dow had a nice gain of 196 points, ignoring bad news about credit for a change. Advance/declines were 3 to 1 positive. Volume still looks a little light though. I'd expect tomorrow to be a holding pattern day before the employment report. So the higher price scenario remains in place for now. Gold lost around 4 bucks with the XAU up a half. ABX and NEM were lower, with ABX leading the way. The US dollar is trying to form a bottom and I think that it will for now. So I can't get all that bullish for gold at the moment. There will be a time to get long the gold shares but I don't think that the time is now. I could be wrong. GE was up over 40 cents on again heavy volume. You really would want to see GE up better then that with the market tacking on almost 200 points. That said, the GE RSI indicator is showing a positive divergence with price and that could be a good sign for higher prices. Or not. The options aren't moving much. How it closes out the week will be the key for staying or leaving. At this point it isn't looking favorable on a weekly basis. But stranger things have happened. Mentally I'm feeling OK but didn't sleep as good as possible. Trading is never an easy task. You really need to keep it as simple as possible. And be honest with yourself. If things aren't working you may need to change things. If things are working, you still need to keep a sharp eye on things. The work never stops. You need to be up for it. Lazy won't cut it.

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