Thursday, March 20, 2008
Back to the upside today as the Dow gained 262 points on heavy volume. Advance/declines were over 2 to 1 positive. Whether the gain was expiration related or just players hoping this is the bottom is one of the questions. Personally, I think that's it for the bad news for at least a few weeks. But that's a guess. It is an election year and we can't have voters worried later in the year if you're a Republican. However we'll stick with the technicals when it comes to doing the trading. Gold lost another $25 to $30 depending on your choice of markets. Now it's a free fall after an amazing run up. The XAU shed 6 points. ABX, NEM and GG lost over $3, $2 and $1 respectively. GG is showing relative strength again but I really wanted to buy some ABX calls today for the bounce. Yes, there will be a bounce most likely followed by sideways activity until we get going again to the upside here. The dollar has stabilized this week and we'll see how long that lasts. My guess is that we won't be going any lower in the near term. GE was again the star of the day, up almost $2 on very, very heavy volume. Incredible volume really. GE had a week like I've never seen. It can't possibly keep that up. Mentally I'm feeling OK. Would have liked to have the courage to step up and purchase some ABX calls today. Might try it Monday if I get a chance but today could have been the day. I mean really, ABX lost 20% of it's value this week as the funds dumped gold shares. Anyway, that's something to ponder over the long weekend. Time to relax, take a break and get ready for next week. Will things begin to slow down, volatility-wise? We'll see.