Friday, July 18, 2008
Another 50 points to the upside for the Dow on expiration Friday. Advance/declines were slightly positive and the volume looks OK. So we held on this week and the bottoming process for this decline has begun in my opinion. The summation index is trying to turn around to the upside and I believe that it will. It's as negative as it gets. That doesn't mean we can't go lower in the averages later on. The VIX hit the low 30's this time around but not as high as previous washouts. Perhaps now we will see the traditional summer doldrums in the market. Gold futures lost around $13 but the XAU gained a point. The XAU dropped yesterday in response to the aftermarket sell-off in gold. ABX, GG and NEM were mixed and the volume was lighter than we've seen lately. I had an order in for some GG calls but it wasn't filled. There is a ton of time premium in the options with the August cycle just starting. I'm still seeing a buy signal for the gold shares though. However we could get less action here as well now as summer takes hold. But that's just a guess. GE was unchanged on light volume. Not thinking of a trade there but I'll look at it closer this weekend. Mentally I'm a bit tired but did get some sleep. I have an idea of what I want to do here but will check things over the weekend. No need to rush things as there is plenty of time. However the buy signal for the gold shares probably won't last next week so I'll have to ponder it the next 2 days. But for now it's time to take a break. It's summertime, the weekend and a rest is in order.