Friday, May 23, 2008
Nothing but downside as the Dow tacks on another loss. 146 points today on light volume. Advance/declines were almost 3 to 1 negative. We are way oversold at this point. Summation index clearly to the downside. When will we see a bounce? I think everyone is looking to get short by now. Perhaps it is just another missed opportunity but I am holding out hope that we get some upside to get short. There really aren't any buyers out there right now though. A long weekend to ponder things. Gold rose over $7 today while the XAU lost 1 1/4. ABX and NEM were losers. GG posted a slight gain. Volume was light all the way around. Do I want to try some gold share calls here again? Maybe but it's looking the same as the OEX puts as far as the timing is concerned. GE lost another 1/2 on good volume again. So perhaps GE is showing the way. Does it mean the overall market will break down past the March lows as well? We'll see. Mentally I'm doing as well as can be expected considering. First a terrible trade in ABX and then missing out on this weeks decline. I'm still liking the bounce and get short game plan but who knows? There hasn't been a bounce. You really have to be mentally tough just to survive in the game. It isn't easy but you've got to keep going forward. I'll check things over the weekend but I already know where things stand. The thing is, you don't want to get short too quickly either. That said, when we do get the expected bounce, I'll probably take the chance. A long weekend ahead which is a welcome break in the action. I'll try and forget about thing for a while and get back at it on Tuesday.