Wednesday, March 28, 2007
The Dow lost 97 points on increased volume. Advance/declines were 2 to 1 negative. We are now oversold and the summation index will be pointing down. The market didn't like Big Bens testimony today. I don't expect any giant declines from here but I certainly don't know. I'm expecting some buying for the end of the month. Gold was up $4 or so today but the XAU didn't move. ABX was flat. These aren't good signs considering we were overbought and the indicators have stayed there without upward movement. It is probably about time to roll over unless we start to move up tomorrow. My thinking is that the overall market has held back the gold shares here. That's just a guess. But we need to start moving higher here and soon or I will have to bail out of this trade with a loss. It could be that the April option cycle will just be a sideways affair. That is a distinct possibility. Mentally I'm trying to keep an open mind about things here. GDP number revision tomorrow could be a mover. That's about it on the economic front. I'm starting to feel that this ABX trade isn't going to pan out regardless of how much time is left. But I could be wrong. The volume pattern still suggests higher prices at the moment. We'll see.
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