Thursday, June 12, 2008
We had a good start to the day, up over 170 at one point. We gave it all back and then snapped back at the end on some Microsoft news. The Dow gained 58 points on heavy volume. Advance/declines were slightly positive. We were oversold and due for some upside. The question is, is that all there is? We'll probably find out tomorrow. Inflation data out tomorrow and we'll move off of that. Gold lost another $10. The XAU lost over 4 points. ABX, GG and NEM all lost ground but came back from their lows. Volume was light. There is a buy signal now for the gold shares. However the momentum is to the downside. I might try something though. The dollar was back up today. Oil sold off and came back at the close. GE was lower by 3/4 on heavy volume. Is GE pointing the way down here? We'll see. Mentally I'm tired, busy day. I really think we need to see some more upside for the overall market here before trying a short play. It also might be too late for that. There is nothing wrong with remaining on the sidelines. The gold shares are looking interesting with the signal. But it's risky there too. But when isn't it? I'll take a closer look at things tonight and go from there.