Monday, June 02, 2008
Still settling things out for the day as the Dow lost around 135 points. Advance/declines are over 2 to 1 negative and the volume looks light but it isn't final as of yet. We were off over 200 at one point and made a comeback. I'm leaving in an open order again for some OEX puts but I'm not completely sold on the idea. We held near term support today and are medium term oversold in my opinion. I don't see any big decline until the oversold condition is worked off. That could happen in the next few days, so I'll keep an eye on it. Summation index will be pointing down, telling me puts are the way to go here. The ideal scenario is strength into Wednesday and take it from there. Gold gained 5 bucks while the XAU was basically flat. The XAU was higher earlier but sold off with the market. ABX was flat. GG and NEM posted small gains. Volume in the gold shares was light. I'm staying away from there for the time being. GE lost 1/3 on good volume. Oversold here as well, both daily and weekly. You'd expect GE to start heading up, considering the technical condition. But it isn't happening. Could that be the harbinger of things to come in the overall market? I certainly don't know. Mentally I feel fine, slept well. As much as I'd like to get some OEX puts here, I am going to wait and see if we get a couple of up days this week. The employment report on Friday will most likely be the big mover, one way or the other. If we get a light volume rally from here, I would feel better about getting the puts. However the market, as always, will do what it wants.