Monday, March 10, 2008
The downside continues with the Dow off another 153 points on good volume. Advance/declines were 5 to 1 negative. Oversold and staying there. Summation index still pointing down. There is a chance that we could even crash here. That said, I bought some OEX calls today. Now who in their right mind would be purchasing calls in a market like this? A bounce is overdue. I think we will have a triple digit up day tomorrow. The medium term technicals are blown out to the downside. This is a short term trade to be closed before the end of the week unless something dramatic to the upside occurs. And I doubt that because we could just as easily fall apart even more here. Gold lost a couple bucks today but the XAU shed 7 1/2. NEM was the strongest today as it only was off fractionally. ABX and GG were both off over a point on light volume. I'm getting another buy signal for gold here today. Some gold calls tomorrow? GE lost 1/2 on good volume and leading the market down. Would like to see some strength in GE for the OEX trade. But the trend is down. Mentally I'm a bit tired as I didn't get enough sleep. Needless to say actually being in a trade again requires a lot of attention and energy. We are at an interesting point in the market. We could just head down for a final washout here. Or not. I have an idea of what will happen here so I had to put on the trade. As always, I could be wrong. We'll see what happens tomorrow.