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Monday, March 30, 2009

A downer Monday as the Dow lost 254 points on average volume. Advance/declines were 6 to 1 negative. Quite a way to start the week but I don't think it is the beginning of another leg down to new lows. I could be wrong but I don't think so. We were oversold on the trin and are now more so. End of the month and quarter tomorrow. That could get things moving. The summation index is still pointing higher but that would change with another day like today. I'll be looking to get some OEX calls if a clear signal is generated. Sidelines for now. Gold lost about $7 today and the XAU dropped 2 1/4. ABX was flat while GG and NEM had fractional losses. Volume was lighter than lately. The volume pattern in the gold shares is favoring higher prices and I still would like to try the calls here. Timing is everything as usual. I may leave in an overnight order. However the indicators here still show an overbought condition and that has me concerned for the immediate upside. So we'll see. Mentally I'm feeling pretty good, slept well. I am going to try and not push things here but you never know. The employment report on Friday is the main focus for me this week. That could be the day to do something perhaps. Or maybe be positioned ahead of the number. I don't have a clear picture right now so it is probably best to wait. Hard to do though. The game is never simple.

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