Wednesday, March 05, 2008
Up, down, up as the market tries to make up its mind here. The Dow gained 41 points today on average volume. Advance/declines were positive. We were oversold and a bounce is to be expected. Have we formed a bottom and on the way to much higher prices? It's possible but not a certainty. The summation index will still be pointing down and that is troubling for the upside at this point. But it all could change. Employment report on Friday and that will be the key in my opinion. Had every chance to sell off today and the market held on. Gold came back big, up over $20. The XAU rose over 7 1/2 points. ABX, GG and NEM were all up over a point. Will we get to $1000 this week? Maybe. Do I still want some gold calls? This market is moving back and forth so much lately that it is hard to say what is going to happen. Can't go up forever though. GE was up 20 cents on average volume. No trades there. Mentally feeling OK, slept well. Really have the feeling that getting long here is the way to go but just can't bring myself to do it. I don't think rallies have any real staying power in a market like this. I could be wrong. Did just get a buy signal on one of the indicators that could last into early next week. Or not. That is part of the problem. We are still in a sideways pattern until proven otherwise. It will break out sooner or later. Waiting for that break requires discipline and patience. It isn't easy.