Wednesday, February 27, 2008
Big Ben was yapping today as the Dow managed a 9 point gain. Advance/declines were negative and the volume was average. The NASDAQ was up and the S&P 500 was down. A holding pattern. What more can Bernanke say? It's slow or no growth with higher inflation. The real story is the credit crisis with a bunch of bad loans around the world. But he can't say that. In my opinion the moment of truth comes when we hit 13000 on the Dow, 1420 on the S&P 500 and 660 on the OEX if we get there. I think that is when it will be a good time to get short. But what do I know? Gold was up $12 to a new high at $960. The dollar is hitting new lows. The XAU was up 4 3/4. GG, ABX and NEM were all up around a buck on decent volume. There is where the money could have been made recently. GE was up a touch on light volume. Nothing really going on there lately. INTC just hung around by the close also. I think I will stop monitoring that one. Mentally I doing OK. Slept good enough. We are getting overbought on the indices but my thinking is to wait before buying the puts. Also that strategy may not be the right one anyway. The summation index continues higher. However we are still in a rectangle for the major indices. A consolidation. We will have to break out to the upside of that to hit the targets I previously mentioned unless we just go sideways to the weekly down trend line. That's the thinking at this point. Time will tell.