Tuesday, July 08, 2008
Finally a bounce as the Dow gained 152 points. Advance/declines were positive for a change and the volume was heavy again. I don't think that it's going to be straight up from here but it could be the beginning of a bottoming formation. I don't think the real short covering has begun yet. I could be wrong. Gold lost $5 today and the XAU fell 3 points. The is another buy signal here for the gold shares. We were even lower earlier. ABX, GG and NEM were all lower on average volume. The GG calls are in the red. Getting short term oversold there. GE was up almost a buck on good volume. The calls there are now showing a small profit. Perhaps GE is leading the way back up. Earnings out on Friday but now things get interesting. I might just have to take the profit ahead of the earnings to avoid the risk. We'll see. I have an open order to sell the calls if the target price is hit. Mentally I'm tired again as I did not sleep well again. I still think we will have a pretty good downside day by the end of the week and Friday could fit the bill. But it's all up for discussion at this point. We'll see what tomorrow brings.