Friday, March 28, 2008
Lower we go as the Dow shed 86 points on light volume. Advance/declines were about 2 to 1 negative. No buyers or interest as we head lower. Will be short term oversold on Monday if there is more negative action. Is it tradeable? Perhaps but the premiums for the OEX options are still pretty high. I might give it a try but I'm not expecting some huge rally. I could be wrong. Gold lost around $17 today, however the XAU only dropped 1 3/4. ABX, GG and NEM were all down fractionally on very light volume. Perhaps we will get back into the pattern of the gold stocks leading the metal again. Or not. The gold shares did sell off early and then came back. I'm still thinking we are going to move sideways there before the next big move. But that could change. GE lost 1/4 on light volume. Nothing exciting there either. Mentally I'm feeling OK, no great shakes one way or the other. We started the week with a nice up day and then just drifted off for the rest of the week. I'm still sticking with the up to sideways trend for the market here. I don't think there is a big sell-off coming in the April option cycle but I could be wrong. At this point the market seems to be waiting around for the next report of bad news. So we'll see. For now it's the weekend and time for a break. I'll be checking the charts and trying to develop a game plan for next week.