Tuesday, March 18, 2008
The Fed to the rescue again as the Dow soared 420 points! We've seen this before recently. I think this time it might have a little more staying power. Advance/declines were about 10 to 1 positive and the volume was huge. Rates were cut again. There was a non-conformation for yesterdays low with the McClellan oscillator. I'm not saying it's straight up from here but I think we'll stop going lower. It could only be a sideways move, we'll see. I still believe that shorting things gets interesting again when we get to the weekly down trend line. But I could be wrong. At any rate we should stop falling for the time being. Gold lost around $20 after the rate cut. All the good news for gold was already in the price I suppose. The XAU lost over 7 points. ABX, GG and NEM all lost over 2 1/2 on good volume. Maybe they just wanted to run them down for the March expiration puts. We did go parabolic in gold lately so a pullback is in order if not an extended decline. GE was up 1 2/3 on extremely heavy volume. Now when do we see GE move like that unless there's an earnings announcement? We don't. I'll need to check the chart but we could be breaking the longer term down trend line here. That would be overall bullish if true. Mentally I'm a bit tired, did not sleep as long as usual. 2 days before expiration. No trades in the works at the moment. Is it too late to get long something for April? We'll see. It will not be a given. The market has been unusually volatile so far this year. Will it continue? Stay tuned.