Tuesday, July 15, 2008
It was another rock and roll day as the volatility is never ending. The Dow lost 92 points on what looks like almost 3 to 1 negative advance/declines. The volume numbers are skewed at the moment but I must assume it was heavy again. I thought today could be the end of the decline when we came back to be positive after being down about 250 points early. But we faded again at the close. There should be some positive divergences in the McClellan oscillator here. And again, the summation index is blown out to the downside. However this decline is relentless. I was thinking of getting some OEX calls for the end of expiration but now I doubt it. Gold had a wild day as well ending up $5 after opening much higher and then selling off for a loss during the day. The XAU dropped 5 1/4 points. ABX, GG and NEM were all lower on extremely heavy volume. GG led the way, down over 3 points after opening up 1 1/2 points. It had a 10% price swing in one day! Crazy times. We are on the cusp of another buy signal for the gold shares here. Only 3 days in the July options though. The dollar was lower today but so was oil. Perhaps I'll try the GG calls here but it's risky. GE lost a 1/2 on heavy volume and was down a buck more than that early on. And so it goes. Mentally I'm doing OK, slept well enough. I still get the feeling that we will be putting in a trading bottom here. Perhaps the lows of today will hold tomorrow and we'll take off from there. But that's just a guess. These are extraordinary times in the markets at the moment. The selling just doesn't stop. It will but I really don't know when. I'm back looking at the gold shares but todays action was pretty intense, especially for GG. It was a one day reversal to the downside. Other than that I think that maybe the best course of action is to sit it out for a while until things settle down. Easier said than done. Opportunities are created here as well. Intel has reported better earnings than expected but nothing like that seems to matter in this market. We'll see what tomorrow brings.