Thursday, February 21, 2008
Finally got the expected weakness today with the Dow off 143 point on average volume. Advance/declines were about 3 to 1 negative. It's been an up and down week so far. However we have basically moved sideways and are still searching for some type of trend or direction. No trades in the OEX for now. Gold hit another record high today, up $10. The gold shares were higher early on the earnings but sold off later. The XAU gained a point. GG held up the best on heavy volume, up 1 1/4. ABX was barely higher and NEM was down 1/2. NEM had a loss for the 4th quarter but GG and ABX had great earnings. With gold at a record high and the earnings announced, what is left to move the gold shares higher? The GG calls I was looking at yesterday doubled. GE was down 1/3 on good volume. We are back to the recent low for GE. It needs to hold in here or it will forbode trouble for the overall market in my opinion. INTC opened higher and closed lower. That needs to hang in here also. Mentally I feel OK, got a good nights sleep. I am a bit troubled by not taking the GG trade yesterday. I just didn't have the guts. It's one thing to lose money. That's going to happen. But to not have confidence to take the trade when you see the opportunity is not a good thing. Sure the earnings could have been bad and the stock could have dropped but it didn't. So that's something that I'll have to work on. No data out tomorrow so we'll see where we go. It's possible the summation index turned around to the downside today but it has been trending higher. It's been a tough game lately.