Tuesday, August 14, 2007
Another interesting day in the markets with the Dow losing 207 points. Advance/declines were over 5 to 1 negative but the volume was lighter then we have seen again recently. We closed near the low of the day and that is never a good sign. We also need to hold 665 on the OEX or near term support is broken. We closed around 664. Unless we rally at the open tomorrow there will be trouble. There is talk now of money market funds that are in trouble and that, if true, would be a real problem. So we'll see what happens. Gold lost around a buck today but again the XAU was down, this time by over 4 1/2 points. ABX and NEM both lower but the volume wasn't all that heavy. The dollar was higher and although gold itself didn't react, the gold shares did. I'll need to check the charts here but there is no hurry to get the gold shares with the stock market in collapse mode. GE lost a half on good volume. No hurry there either but an up trend line on a weekly basis is approaching. Decisions will have to be made then. At this point it doesn't feel as though it will hold but we'll see. Mentally I'm feeling OK, slept OK. Would like to try something here but there really aren't any decent signals at the moment and it is expiration week. It is a different kind of market at the moment. The normal indicators won't react or perform the way they usually would. This has to be taken into consideration. It doesn't hurt to be even a bit more cautious in such an environment. As I said earlier, the way I see it we either rally from the bell tomorrow or there will be trouble. Interesting times...
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