Thursday, August 28, 2008
More room to the upside as the Dow gained 213 points on better volume. Advance/declines were over 3 to 1 positive. Summation index back to the upside. Short covering? End of the month movement? Beginning of a sustained up move? Plenty of questions. The volume wasn't that good normally but it is the last week of August. Long weekend almost upon us. Gold was up $4 but was much higher early in the day. The XAU had the same price pattern and ended down a 1/4. ABX, GG and NEM ended up slightly down to flat on light volume. The pattern for the gold stocks today was the same as it's been for most of the week. Opening higher and then selling off throughout the day. Basically the gold shares haven't been able to hold their gains. That doesn't bode well going forward. We're getting overbought here as well. My guess at this point is that I will get stopped out. We'll see. GE gained 60 cents on light volume. No trades there for now. Mentally I'm doing OK, haven't been sleeping good lately. I really don't know if this weeks market action is setting up for a fall or if we are going to get to 620 soon on the OEX. Sometimes what happens in September is that we are strong in the first half of the month and then weak in the second half. Or vice versa. The breadth has been very good lately. What's been missing is the volume. That is why it is hard to trust it at the moment. End of the month tomorrow and we'll go from there.
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