Tuesday, February 05, 2008
What a day as the Dow lost 370 points. Down volume swamped up volume and the advance/declines were 4 to 1 negative. I guess that relieves the overbought condition. Not sure what is going on at this point. I suppose this time we are going to retest the lows. That should be the next stop. Are we in a bear market? It looks like it when we have days like today. Let's face it, major up trend lines have been broken. Sideways is perhaps the best we can hope for at this point. Buying weakness is a short term proposition for now. Gold lost over $15 today and the XAU dropped 7 points. ABX and NEM were both down around a buck and a half. The buy signal for the gold shares remains but the prices are dropping. That is not a good sign. The dollar was pretty strong today and appears to be putting in a bottom. We do have earnings for a lot of the gold shares coming out on 2/21. That should be an interesting day. Forget HL and the earnings play for the February cycle. I looked at it, didn't do anything and now it has broken near term support. GE lost over a buck and the weekly down trend line remains in place. I think I'll leave it alone. INTC lost around 90 cents and I might try the calls here if they get cheap enough. Risky. Mentally I'm doing as well as can be expected. A lot of crosscurrents and of course the game is never easy. I'm going to try and wait for a decent signal in the OEX before placing the next trade. As always, ther is nothing wrong with preservation of capital.