Monday, July 21, 2008
The Dow lost 29 points on Monday light volume. Advance/declines were positive. Short term overbought for now. Plus the market is selling off in the aftermarket due to bad earnings. However the summation index has turned around and a retest of the lows is in order. So it is kind of a mixed bag but I think the decline is over for now. I don't think we'll see anything substantially below 1200 on the S&P 500 in the near future. I could be wrong. Gold was up around $5 today and the XAU gained over 4 points. ABX, GG and NEM were all higher but the volume was nothing special. I had an order in again for some GG calls but wasn't filled. In fact GG only managed to gain 1/2 while ABX and NEM both tacked on over a point. So I'm wondering what is going on there. I might leave in an overnight order for GG again, we'll see. A lot of time on the options here and I don't like to buy them early. However the buy signal is still there but weaker now with todays positive action. The dollar had a bad day and there is a chance that if the dollar gets weaker here, we go to new lows for the greenback. That would support gold. It's only a guess but it is looking like a possibility on the charts. GE lost over 60 cents on light volume. No trades there for now. Mentally I'm feeling OK, slept all right. Trying to figure out what to do with gold here. NEM earnings on Thursday. ABX and GG Thursday of next week. We just had a lot of volume and volatility in gold the past 2 weeks. I can't expect things to continue like that. The fact that GG, which has been the leader recently, didn't participate in the rally today concerns me as well. I still might take a shot at it here. But it is summertime and I would expect things to slow down at some point. Maybe not?