Tuesday, March 25, 2008
Seemed like a day of indecision as the Dow lost 16 points on average volume. The overall market was stronger as both the S&P 500 and the NASDAQ were higher. Advance/declines were almost 2 to 1 positive. The summation index has turned around to the upside. The market certainly acts like it is out of panic mode for the moment. But we all know how that can change. A bit overbought but no signal for a trade yet. Gold rallied $16 as the dollar was weaker. The XAU gained 8 1/4 and closed near its high. That's the expected bounce taking place. Wasn't filled on the ABX calls as it was off to the races for the gold shares from the open. GG had the relative strength again as it was up 2 1/2. ABX and NEM managed 1 1/2 to the upside. Volume was average, not the heavy volume that took place on the spike to the top. May try getting long the gold shares on the next pullback but that isn't set in stone. Sideways action would help build a base for the next run-up if there is one. GE lost a touch again on average volume. No trades there. Mentally I'm feeling pretty good considering missing the gold bounce. The ABX calls didn't move that much anyway since we are so early in the option cycle. So now it's a waiting game for some other signal in the OEX or something else. Sometimes the April cycle is a sideways affair. We'll see how this year plays out.