Tuesday, April 22, 2008
A downer on Wall Street today as the Dow lost 105 points. Volume was a little better, with the advance/declines over 2 to 1 negative. We were lower from the start and about off 170 at the days worst levels. Working off the overbought condition. Is it the beginning of the end? Not just yet in my opinion but I could be wrong. As I said yesterday, I'd like to see it build a top here before getting short. And even then it may not be the right scenario. I'm going to see how it plays out for now. Would like to see some momentum divergences but I'll have to be patient. Gold was up around $7 today but the XAU dropped 1/2. ABX, GG and NEM all down a touch on light volume. What's going on here I wonder? Not usually a good sign when the gold shares don't follow the metal itself. The dollar was weaker again and oil hit another record high. However nobody was flocking to the gold shares. GE lost a bit on average volume. Not much going on there since it blew out the Friday before April expiration week. Mentally I'm a bit tired, not a good nights sleep. I'm going to try and be patient here, with the May option premiums still pretty high. We haven't broken out and we really haven't broken down from the moment of truth here. I'd like to see a lighter volume push to the upside here and get short then. But it's wishful thinking as the market will do what it wants. I suppose if ever there was a time to pay attention, it's now.