Monday, August 20, 2007
The Dow gained 42 points on light volume. Advance/declines were positive. We were both up and down about 100 points during the session. The overall market was weaker then the Dow. Can't say I have a good feel for what happens next. I'll wait for the indices to get to the recent down trend lines and take it from there. Gold was basically unchanged but the XAU rose around 2 1/2. ABX was up over 1 1/4 on OK volume. NEM barely moved. No reason for ABX to be so strong that I can see. The calls I bought last week are showing a profit. The question is when to sell these things. It's probably best to dump them when we get short term overbought but we're not there yet. Perhaps I can buy them back later. We'll see. GE was down a 1/4. Mentally I'm feeling good with a good nights sleep. I'll need to check the charts again tonight to get some type of feel for what comes next. I don't think the decline is over but we could go sideways here for a while. It is also possible that the decline is over. There should be a retest of last weeks low at some point. What happens there will be the key for the future. If it holds then the bottom is in. If it doesn't then we will head on down lower. That's my best guess at this point.
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