Thursday, January 17, 2008
It seems as if we are in crash mode. It doesn't exactly feel like it but you can't argue with price. The Dow lost 307 points. I will have to confirm the volume because it looks like the heaviest that I've ever seen. Advance/declines were over 5 to 1 negative. Oversold and staying there is always dangerous. The summation index should now be heading down without hesitation. I have support on the OEX at 620 and we are only 5 points away from that. Hopefully that holds up tomorrow or else I don't know where we're going. Gold lost a couple bucks but the XAU fell another 5 1/2. I am actually getting a buy signal again here for the gold shares. NEM and ABX were both down on heavy volume. The options are very pricey for February but the signal is there. Perhaps I'll pick something up tomorrow. It's tough in a market like this. But we'll see. GE lost 1 1/3 on double the normal volume. No need to wait for the earnings tomorrow, it's already fallen apart. It's that kind of market. Mentally, I got a good nights sleep and feel fine. The weakness that we are seeing doesn't bode well for the rest of the year. There will be rallies from time to time but you have to admit that the trend is down. What is means for the economy as a whole, I don't know. But it can't be good if we are dropping everyday like a rock. The market is as oversold as I have ever seen it and still continues to fall. I won't pretend to say that I know what will happen next because what normally works here isn't. I'll just hold tight for now and maybe pick up some gold shares tomorrow.