Thursday, February 28, 2008
A down day after 4 days on the upside. The Dow lost 112 points on average volume. Advance/declines were 2 to 1 negative. The beginning of something big to the downside? Who knows but I don't think that's about to happen just yet. Big Ben was still yakking on the hill and mentioned some banks might fail but not the big ones. Perhaps we should have been down more with such dire language from the Fed. Plenty of time in the option cycle so there is no hurry at the moment to enter any OEX trades. I think we'll trend higher from here. After that, then the opportunities arrive in my opinion. Gold was up another $6 and continues higher in the after market. The XAU rose 5 points. ABX, GG and NEM all up over a buck on average volume. We are moving straight up in gold as the dollar moves straight down. It won't go on forever but there is no telling when it will end. The buy signal in gold was generated a few weeks ago and took longer then usual to manifest itself. I'll try to remember that next time around. GE was off a little on light volume. This stock is going nowhere fast. Great if you're an option writer there. Mentally I'm a bit tired, did not sleep well. So it's a waiting game for some type of signal or the levels I explained yesterday to arrive. It's not always easy to sit on the sidelines but you can't always be looking to force things. For now I'll have to be patient and get ready for the next move.