Tuesday, June 24, 2008
The Dow lost 35 points today on heavy volume. Advance/declines were 2 to 1 negative. We are due for some positive action. We opened lower, went positive and then fell back. I don't want to say crash but we need to move to the upside. The Fed meeting is 2 days so the announcement will be tomorrow, not today as I stated yesterday. That should be some type of catalyst one way or the other. I'm hoping that we will start to build a bottom here because if we don't... Technically oversold here. Gold rose $4 and the XAU dropped a point. ABX was flat, GG lost a bit of ground and NEM was up 2/3. Volume was light. The dollar lost a bit of ground ahead of the Fed. So now what with the gold shares? ABX and GG are both showing dojis on their respective daily candlestick charts. That isn't bullish. I still would like to be a buyer of the gold shares on the next buy signal though. GE was up 1/4 on average volume. Nothing doing there. Mentally I feel OK. We all know that it's a tough game to play. Patience is required. The July option cycle has just begun. I'm going to stick with my gold share scenario for now. I'll purchase some calls on the next signal provided we are oversold. There's also a chance that gold could break down through the support at about $870 and then all bets are off. I don't think that's going to happen but it could.