Wednesday, June 11, 2008
Back to the downside as the Dow lost 206 points on good volume. Advance/declines were 4 to 1 negative. Getting pretty oversold at this point but there is no indication that the downside is done. Summation index continuing lower. We are just below 610 on the OEX, which was my original target. How far down are we going? Can't say that I know but now it seems as though the powers that be will run this thing down into the expiration. If we do get some short covering, I might try the OEX puts. Gold came back over $10 today and the XAU gained 1/2. ABX, GG and NEM all had fractional gains and were higher earlier in the day. Volume was lighter than yesterday. As crazy as it sounds we are close to a buy signal for the gold shares. I am thinking of leaving in an overnight order in case we drop at the open tomorrow. I'll check the charts and go from there. The dollar fell pretty good today and the volatility there lately is puzzling. Oil was higher and gold followed this time. I can't say that I have a solid grasp of what is going on at the moment. GE dropped 1/2 on good volume. No trades there. Mentally I feel OK, considering that I have missed this downside move. Slept good last night. There will be opportunity here, with the market dropping out of bed. I might go out to the July or August gold calls. We'll see. It could be that we just keep heading lower too. I'll need to keep an eye on things and not be afraid to take a stand if I feel that the time has come. But it won't be easy.