Wednesday, July 02, 2008
The Dow broke to new lows today, down 166 points. Advance/declines were over 2 to 1 negative and the volume was heavy again. It seems as if nothing will hold this market up. Oversold and staying there. When will it end. I don't know. All rallies are being sold and there has not been the usual short covering burst to the upside. Employment report tomorrow and is there any doubt we will sell-off when it's released? Gold gained a couple of bucks while the XAU dropped over 7 points. What's going on here? Profit taking before the ECB meeting I suppose. It almost puts the gold shares at another buy signal. Perhaps tomorrow. ABX, GG and NEM all down on good volume. ABX lost a buck and the others over $2. The dollar fell again today. I suppose I could get some calls tomorrow if there's a decent signal. We'll see. GE lost 65 cents on lighter volume. I should have just gotten out earlier this week because this was supposed to be a bounce trade. Another mistake. GE would have to rally 10% for this thing to work. Is it possible? Not in this market regardless of the earnings next Friday. Mentally I'm recovering form the dentist and I didn't sleep well so I'm a bit tired. Not the ideal conditions for trading decisions. The selling continues and it is a market that I'm not familiar with. No bounces and simply lower. A water torture decline. Haven't had that blowout down day that signals the bottom. Perhaps tomorrow.