Wednesday, August 15, 2007
Somewhat of a roller coaster ride today with the Dow off 167 points at the close. We were up 90 at one point. Advance/declines over 5 to 1 negative again with even lighter volume then yesterday. There is actually a buy signal on one of my indicators here. I don't know if I'm going to try it. Only 2 days left until expiration. It certainly isn't a trade I'd be confident of but we'll see. There's also a chance it just keeps going down. The economic releases don't matter right now as something big behind the scenes continues. We haven't had that final blow-off to the downside yet. I'm thinking it won't be until next month. Gold didn't do much today but the XAU fell hard again, down almost 6 points. NEM held up better then ABX. ABX was off over a point. I am actually getting a buy signal for the gold shares here relative to gold. I am thinking of putting in an overnight order for some October calls. We'll see. GE lost over 3/4 and is almost to the weekly up trend line. At this rate it won't hold but that remains to be seen. Like the rest of the market there are many more unknowns out there then usual. How long can the decline last? A 10% correction on the Dow is 250 points away. The fear level is pretty high already. Perhaps that will do it. But that's just a guess and certainly nothing to trade off of. The VIX is at 30 and could go higher. Mentally I'm trying to not do anything stupid. Like trade the OEX with 2 days left. Especially in a market like this. I do think a bounce is coming before the close on Friday. Trading it is another question.
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