Thursday, February 14, 2008
It was a downer today as the Dow lost 175 points on light volume. Advance/declines were about 3 to 1 negative. Are the buyers done? Who knows? The expected rally may have come to an end. I would expect tomorrow to be higher but that's a guess for expiration. As I said before next week should be a downer. We'll see. Gold was little changed today and the XAU dropped 2 1/2. ABX was off over a buck on heavy volume again. It would seem people are bailing out of that issue at the moment. NEM was down as was HL. HL postponed the earnings release until next week. Interesting. Delaying the good news? Doubtful but I certainly don't know. There has been a buy signal for the gold shares for a few weeks. Eventually it will pan out. The question is when? Earlier, the buy signal could just be bought and it would work. That isn't happening this time. GE and INTC were both down on light volume. No trades there. Mentally I'm tired but the show must go on. If the market actually turns down here, it could get ugly. If the previous lows don't hold we will be in for trouble. There is an extra week on the March options, so the premiums are very high. There is nothing wrong with preserving your capital. When things are clear and there is a good signal, then you can put the money to work. Patience isn't always easy but it is always necessary.