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Tuesday, September 02, 2008

It was a wild way to start the week as the Dow was up almost 250 early on, only to close with a loss of 27 points. Advance/declines were positive but the overall market was lower. Volume was good. It is a one day reversal to the downside but this market has been bouncing around for some time now. I'm on the sidelines with the OEX for now. Gold got clobbered, down $25 and it was lower than that. The dollar was higher and oil lost over $5. The XAU lost 10 points. ABX, GG and NEM all down around $2, with GG leading the way off 2 1/2. Volume was heavy, which isn't a good sign going forward for the bullish case. My GG calls are right back where I bought them. The price gapped down on the open, passing my stop loss price so the order wasn't filled. I'm leaving the order open for now but I might cancel it before the employment report on Friday. In retrospect, I should have been out of this thing last week but the stochastic didn't roll over until today. I might just hold it until October so we'll see. GE was up 40 cents on good volume. Perhaps it is saying that the market will be OK here. That's a guess. Mentally I'm doing OK, slept well enough. Questions remain about this market with todays action. There really hasn't been a decent trend in some time. We had the extended down trend and have moved sideways to slightly higher since. It's a tough trading environment. Plenty of time in the September cycle though. We'll see what tomorrow brings.

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