Thursday, January 31, 2008
Another wild day of gyrations as the Dow gapped down 180 points at the open and ended the day up 207 points at the close. Volume was heavy and the advance/declines were 3 to 1 positive. Todays action negates the one day reversal from yesterday. There was no follow through to the downside as had been expected. Summation index still pointing higher and the trend is up. It looks like there will be no retest of the lows. It's a little late to jump on board but if we do get more than one day of weakness, I'd look to get long something. Employment report tomorrow. Gold was up a couple bucks but the XAU lost 3 points. ABX and NEM both lost more than 1 1/4 on average volume. HL was down. Interesting to see the gold shares not participating in todays rally. Is it a sign of things to come? Stay tuned. I certainly don't know the answer to that. GE was up about 40 cents on heavy volume. Still no trades there. INTC up a half on good volume. I don't want to chase these issues here. If we get a pullback, then it's worth a shot. If not the sidelines are where to stay for now in my opinion. Mentally I'm feeling OK. No clear signals, short term, for now. Longer term the trend is up. Weakness can be bought. Sometimes the hardest thing to do is remain patient. It isn't an easy game and usually profits are not just going to be handed out. You've got to work for them. On to the employment report. I have no guess as to where that will come out but I don't think it will show a lot of new hiring in this type of market enviornment. We'll see.