Wednesday, March 19, 2008
The roller coaster ride continues as the Dow lost 293 points on heavy volume. Advance/declines were over 2 to 1 negative. Which wasn't too bad considering we lost almost 300. Bottoming process? We'll see. Expiration week gyrations? Perhaps. Just a continuation of the bear market? Time will tell. As usual lots of questions with no easy answers in this market. I'm sticking with a sideways to up theory at this point. With more volatility then usual. Gold dropped another $40 today. Depending on the market you use it will be reported that gold lost $60 today. Whether it's gold futures or spot market, it got clobbered. Nothing goes straight up forever. The XAU lost almost 15 points. GG and NEM were both off over $2. ABX lost almost 10% of its value. The volume was extremely heavy. They pile in and they pile out. There is a buy signal for the gold shares here again but I would not advise it. There will be an entry point again but not yet in my opinion. GE was off a half on heavy volume. It has indeed broken the weekly down trend line. That doesn't mean that it's straight up from here but it is constructive going forward for now. Mentally I'm doing OK. Volatility takes its toll but I don't have any trades going at the moment. We'll get through tomorrow and then take a look at things over the long weekend.