Wednesday, May 28, 2008
The Dow gained 45 points today on average volume. Advance/declines were positive. We opened higher, went lower and closed back up again. After such a negative week last week, we are not seeing any follow through to the downside. We've had opportunities for that but it hasn't occurred. Perhaps we are making our way back to the violated up trend line. Or maybe that's it for the decline and we will power higher. I do think we need some move positive action short term according to my work. I still have an open order for some OEX puts though. I'll cancel it if we get some volume to the upside. Gold lost another $7 today but the XAU was up almost 2 points. It opened lower and closed higher. ABX, GG and NEM were all fractionally higher on average volume. It was a one day reversal to the upside there. I can't get too excited about it though. I think we might go sideways there but that's a guess. Oil was back up today and I think gold followed. GE was up a touch on heavy volume. There has been a lot of volume in GE lately. I'd like to say that I know what that means but I don't. Mentally I'm doing OK. Trying to figure out the next move here. Medium term is looking more like a buy signal than a sell. Summation index is heading down. I do think we need to see more upside near term though. So it's a bit confusing and kind of mixed at the moment. I'm still looking short side but that could be wrong. GDP revision tomorrow and some oil inventory numbers, so we'll see what happens.