Friday, June 22, 2007
The Dow lost 185 points on very heavy volume. Advance/declines were 3 to 1 negative. The summation index has rolled over and the trend is down. I have no reasons for the decline but my belief is that we are going to set up for a summer rally. But I'm not so sure as I was before. There is a possibility that we have put in a double top in the indices. The measuring objective for the OEX would be 660. Time will tell and I'm really not sure as I haven't been able to figure things out lately. Gold was up over $2 but the XAU fell 3/4. ABX continues to rise despite the market. It was up slightly today on good volume in a down market. I get the feeling that something is going on here but I certainly don't know what. The relative strength stands out and I do want to get the calls if it ever pulls back. Perhaps I will get a chance next week. GE was down today and the volume was pretty good there. It is almost back to the breakout point at 38. I would like to get the calls there but the overall market action has me worried. None the less, I am probably going to give it a try. Mentally I'm feeling fine with a good nights sleep. I am a little frustrated with ABX since I don't own the calls and it keeps moving higher. But there is nothing I can do about that at the moment. Like I said we'll see about it next week. The market action has me concerned because I did not expect such volatility at the beginning of summer. It is normally a slower time. So we'll see what happens. Fed meeting next week and I'm sure we will move off of that. For now it's the weekend and I will try and relax for a couple of days...
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