Monday, March 17, 2008
Well it wasn't too bad considering a major Wall Street investment bank just went belly-up. The Dow gained 21 points after being down almost 200 and up 100. Advance/declines were 5 to 1 negative and I don't have good volume figures at the moment but I'm sure it was heavy. They managed to keep it propped up today but tomorrow? Who knows? The dollar stabilized for a day and it's in free fall. Fed meeting tomorrow and even if they cut rates, which they will, it really doesn't matter at this point. The damage has been done. The overall market was weak, with the NASDAQ and the S&P 500 both lower. It's another worldwide margin call as the overseas markets were much lower. What happens next is the question. It does look like a 5 wave down pattern in the major indices so we could be near a bottom here sometime this week. Or not. It does seem like a lot of the bad news is out for now. Expiration week though and that good get things overdone. We'll see. Gold was up over $25 at one point but came back to be up $3. The XAU lost 6 points. ABX, GG and NEM were all down, with NEM down the least. How much longer can that party go on? No trades there at the moment. GE was up 1/2 on very heavy volume. My guess is that the word went out to buy stocks such as GE, INTC and MSFT to keep things from getting totally out of control today. At least you know that these companies are going to stick around regardless. Mentally I'm doing OK. 3 days before expiration and a Fed meeting to boot. Hopefully I won't be doing anything foolish here but you never know. Usually when it seems as if the world is falling apart, it's a good time to buy. I agree with that however it may just be a temporary bottom with more to come later on. Or it may not be near the bottom at all. As usual there are a lot of questions with no easy answers.