Tuesday, March 29, 2005
The market just will not go up. I didn't have time to post yesterday but the market was up but could not hold its gains. Today the Dow was down 80 points on good volume. Advance/declines were over 2 to 1 negative. A bounce has been due and overdue. When it can't bounce, and is nearing the zero line on the summation index, we could actually crash. I mean completely fall apart. This is the scenario at this time. My GE trades will not work. I tried to sell the April calls but with GE down 50 cents today there is no bid. It could be a total loss. This trade will not work, it is a loser. Perhaps if the bounce that never comes happens, I can cut the loss. Sometimes you just get it wrong and that is the case here. The indicators just stayed oversold and that doesn't usually happen. The year ending in 5 looks like it is all wet. Oh well. Gold didn't move much today and the dollar was weaker. Again, confusing action. The gold shares continue to sell off. This is one of those rare times when nothing seems to be working properly. I should be flat and just in cash if I had any brains. But part of me wants to believe that a rally is coming as March ends and that we are at the lows of the year. But it just doesn't look good. All signs are pointing down and there is not much I can do about it. Employment number on Friday and that could really send us over the edge. It's all a guess at this point.
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