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Thursday, October 01, 2009

Well, the decline began in earnest today as the Dow lost 203 points on good volume. Advance/declines were 4 to 1 negative. Rallies can be shorted. We are pretty oversold here so a bounce is in order but it will be short lived in my opinion if it happens. Summation index pointing down. I did end up putting in an overnight order for some OEX puts but it wasn't filled. I'll wait for some type of bounce and try again. Employment report tomorrow. Gold lost $8 today and the XAU fell 7 1/2. The dollar gained some ground today. Flight to safety already? ABX lost 1 3/4, GG dropped 1 7/8 and NEM off 1 1/2. All on average volume. The gold shares are at support here and a break would not be good for the bullish case. I'll be keeping an eye on them. Mentally I'm doing OK, slept well enough. So the employment report will be tomorrows focus and we go from there. I have no idea what the number will be but it is the markets reaction that will be key. I don't plan on putting on any trades tomorrow but you never know.

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