Monday, January 28, 2008
It was a good day for the bulls as the Dow gained 176 points on good volume. Advance/declines were over 3 to 1 positive. Even weakness in the foreign markets couldn't keep the Dow down. Lots of data this week with GDP, the Fed and the employment report. The summation index should be heading up again with todays action. Look to get long on weakness. Gold hit another record high today, up over $16. How long can it go on? Longer then I think probably. ABX and NEM were both up over a buck on good volume. The dollar was weaker once again. HL didn't do much. I would have expected something better then that with gold up so much. The XAU rose 3 points. Sure I'd love to have some gold share calls but it could be too late to try anything there. Or not. That is a dilemma. GE up about 3/4 but the volume was lighter then we've seen recently. Still you've got to like the direction there. INTC was up only 20 cents and the volume was light. I still might try some thing there but that sector has been lagging lately. Mentally I'm feeling good. Back to the normal schedule here and that will help. Plenty of time left in the February cycle but I must say the option premiums are still pretty high with all the recent volatility. That is an issue. I'm still thinking the way to go is long here, there is a lot of bearishness. But who knows? I've been wrong before. I'm going to look for a retest of the lows. If that occurs, I'll get long. If it doesn't happen I suppose I'll have to wait until we get back to the major down trend line, which is pretty far off. We are just about back to the short term down trend line for the OEX at about 635. What happens there could be the key for the rest of the week.