Friday, February 22, 2008
We were down most of the day. 100 points or more at times. However in the last half hour we got a powerful rally and the Dow closed up 97 points. Advance/declines were positive after being negative most of the day. The volume was light to average. It's a one day reversal to the upside. My guess is short covering. There wasn't any news to cause it. We were right at the precipice of falling to new closing lows but it didn't happen. Perhaps this will launch us into a decent rally. Time will tell. I'm as confused as the market is here. Sidelines foe the OEX. Gold was off a couple bucks and the XAU dropped about 1/2. The gold shares mimicked the overall market, making a comeback in the last half hour as well. GG was up a touch as it kept its relative strength here. ABX and NEM were both down about 1/2. Volume was nothing special. GE ended down a dime on average volume. It is at its recent lows as is the overall market. INTC lost a 1/2 on expanding volume to the downside. Mentally I'm feeling OK, slept good enough. If we had closed down today we would have been short term oversold. As it stands there is no clear signal one way or the other. We almost broke down today but held on for now. We are moving sideways. Once we get a breakout one way or another, then there will be a chance to attempt a trade. Patience isn't always the choice but it's what must be done now. The weekend is here. Time for a check of the charts and a game plan going forward. The option cycle is now 4 weeks.