Tuesday, January 15, 2008
The Dow got clobbered again today, off 277 points. Advance/declines were over 3 to 1 negative and the volume was heavy. Blame it on weak retail sales, Citigroup, inflation or whatever you want. The summation index will now be pointing back down as we move back and forth on that indicator. We are oversold and staying there as we have been for weeks. That's never a good thing for the bullish cause. We closed at the low today also. It's interesting but trading this kind of market can be treacherous. I'll do my best not to attempt anything this week but there are no promises. Gold opened higher and closed lower for a one day reversal. The XAU lost over 6 1/2 points. The volume was very heavy on both ABX and NEM. NEM closed about unchanged while ABX lost a buck. They piled into the gold shares and now the question is are they about to pile out? Don't know. The Fed move is already in the market in my opinion. I think perhaps trading the earnings for the gold shares could be next. We'll see. GE was lower on heavy volume. No trades there but it's beginning to look like the downside is the way to go. Mentally I'm doing as well as can be expected. My thinking is that we are beginning a time in the markets that might be hard to make money on the upside. It is one of the weakest beginnings of the trading year that I can remember. The summation index is moving sideways yet prices continue to fall. I see support at the moment at 620 on the OEX and we aren't near that yet. It isn't a time to be calling any bottoms in the market. That's my guess. After the bell, Intel reported poor earnings and so tomorrows open should be ugly. We'll go from there.