Wednesday, September 17, 2008
Another decline today as the Dow lost 450 points on extremely heavy volume. It's a free fall. Advance/declines were over 12 to 1 negative at least. Summation index continuing lower. How low will the market go? Usually lower than you think. It looks like we will go down all the way into expiration at this point. You'd like to think there are some bargains out there but at the moment the world thinks every company is going under. They aren't but to tell where it all ends is impossible. Gold caught fire today as it finally became a flight to safety play. It rose $70 on the futures and continues higher in the aftermarket. The XAU rose over 10 points and is right at the daily down trend line. Another day like today and we will be through it which would be quite bullish. But it hasn't happened yet. ABX, GG and NEM all gained over 3 points on insane volume. It is a crazy time in the markets, I can't emphasize that enough. The GG calls have come all the way back from the dead and there is still over 4 weeks to go. However things can turn around and head back the other way overnight. That's what kind of game it has become. GE lost 1 1/2 on incredible volume. It's a panic sell for sure but you just don't know when it will stop. I would like to get some GE calls and am seriously looking at that as the next play. It's risky though but what isn't at this point? Mentally I'm tired again, did not sleep well. Really would like to get a good nights sleep. I've seen these kind of free falls in the overall market before. You don't want to get long too early. You also want to take the profits if you get any pretty quick. The volatility gets intense. As crazy as it sounds, it's kind of fun too. Well, at least it's not boring. We'll see about tomorrow.
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