Wednesday, July 09, 2008
Back to the downside today as the Dow lost 237 points on good volume. Advance/declines were 2 to 1 negative. Perhaps yesterday was all the bounce we could manage. Everything is getting sold now and I have no reasons. Summation index still pointing down and it is not turning. Oversold and staying there. It won't last forever but it has lasted longer than I would have thought. It's a liquidation of stocks and I won't begin to pretend that I know why. Gold was up 5 bucks today but the XAU lost a 1/2 after being up by 6 points. ABX and GG had small gains while NEM lost 1/2. Volume was average and these issues too had nice gains and gave them all back. The dollar was lower and oil flat. The GG calls showed some profit early but are now in the red again. I'm about at the point to just dump them but the buy signal for the gold shares remains. GE gave back almost all of yesterdays gains, off 85 cents on average volume. I cannot believe that the calls I have are so far out of the money yet still worth something. It's all earnings premium that will be sucked out at the open on Friday with the earnings release. Unless it just continues to fall apart tomorrow and then even the earnings won't save them. Mentally I'm feeling better, got a good nights sleep. The charts for the market and what I have positions in look very bearish after todays action. Things will have to turn around quickly or there will be losses. But it's all part of the game. I probably should be on the sidelines here because the market is not responding to the usual cues. I'm seeing some technical readings that don't make sense given the underlying action. I have to believe in the gold share buy signal because it has worked so many times before. Only 7 days left on those GG calls though. GE is another story because it did turn around but today negated that. I suppose I'll just wait for Friday there now.