Friday, August 08, 2008
Up and down we go. Back to the upside for the Dow as it gained 301 points on what looks to be average volume. Advance/declines were a bit over 2 to 1 positive. Still moving higher but this is a tough trading market. Positive expiration bias in effect? Could be. I think it has more to do with the dollar rally as investors look for dollar denominated assets. But that's just a guess. Gold continues lower, down around $15. The gold shares continue their free fall with the XAU off 6 2/3. ABX and NEM off a buck. GG down over 2. Volume heavy again. It's been an incredible drop for the gold shares. I'm still looking at going out to the October calls, perhaps next week. Oil has tanked, off another $5 today. The commodities are seeing money flee and it's finding a home in the stock market. The stronger dollar is the main reason in my opinion. We are just about at what I consider resistance for the dollar. So the time for the gold shares could be upon us. Or not. GE was up a buck on average volume. Its pattern is following the overall market here. Mentally I'm feeling OK, slept well. We have seen a tremendous shift in the money flows in the past few weeks. The question is how long can it go on? Usually, longer than you think. I'm going to have to check the longer term charts carefully over the weekend. No summer doldrums this year. But it's the weekend and time for a break. August in summertime.
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