Wednesday, April 02, 2008
A slight pullback today as the Dow lost 45 points on average volume. Advance/declines were positive. I'm still sticking with the sideways to up scenario. My guess is that it's a waiting game for the employment report on Friday. We'll go from there. Gold was up $12 and is rallying in the aftermarket. The XAU rose 7 1/2. ABX and GG were up around $2 and NEM gained 1 1/2. The volume was good. The buy signal seemed to be working today. I think we have established a line in the sand with the XAU at 170. We've bounced off of that level twice. If we meander back to that level, I'll be getting some gold share calls. It might be too late. The dollar was weaker and gold seems to be tracking that pretty closely lately. So we'll see. GE was off 1/2 on lighter volume. No trades there. Mentally I'm a bit tired, did not sleep all that well. Not all that excited about the April option cycle at this point. I don't see any clear signals at the moment. It seems like we will try and reach the weekly down trend line for the OEX at 650. That's how it feels right now. Summation index moving higher and the market isn't getting a sustained rally yet. I would like to get short the next time it rolls over but that could be a while. For now I'll just have to sit tight and keep an eye on things.