Tuesday, April 01, 2008
It was a very positive day for the markets as the Dow rose 391 points on heavy volume. Advance/declines were over 5 to 1 positive. Beginning of the month and quarter money being put to work? Rotation out of bonds and commodities? Short covering? Pick what you'd like. Bad news from UBS and the market shrugged it off. Summation index still heading higher and after today with some gusto. The market is trying to move out of the sideways range to the upside. I still think the moment of truth is at the weekly down trend line and the Dow is almost there. If GE is any indication, that down trend line will be broken to the upside. GE was up another 1 1/3 today on good volume. It has been one hell of a move there in the past month. This isn't your typical move in GE and I think it bears watching for the overall market. Gold got clobbered today, off over $30 and closing below the $900 level. The dollar was stronger. The XAU lost almost 4 points which wasn't that bad, considering. ABX and GG both lost more than a buck on good volume. NEM was only off a half but it's already blown out to the downside and below the 200 day moving average on a daily basis. Still a buy signal here for the gold shares but it isn't working. I will get some ABX calls sooner or later though. I mean who knows, a weak employment report will have dollar dropping again most likely. However I'm remaining patient there at the moment. Mentally I feel OK, got a good nights sleep. Interesting day today as we've seen some incredible rallies in the past 3 weeks. None of them have led to a sustained multi-week upside move as yet. Will this one be different? That is the question. However when the market rallies in the face of bad news, you've got to pay attention. We'll see what tomorrow brings.