Tuesday, September 23, 2008
Continuing lower with the Dow off 161 points on good volume. Advance/declines were over 2 to 1 negative. Waiting for the bailout package from Congress at this point. Summation index lower. Can't really say what is going to happen with the market at this point. It's all a guess as we are in uncharted territory. Anything could happen. Gold lost $17 on the futures but is coming back in the aftermarket. The XAU dropped 4 1/2. ABX and GG lost 3/4, while NEM fell 1 1/2. All had heavy volume again. We're overbought here and I would like to give the gold shares some time before getting long again. The options are full of premium with the volatility and length of time remaining in the October cycle. So it's a sit and wait game for now. GE lost 1 1/3 on good volume but not the crazy kind of volume we saw last week. I'll need to check the chart there. Could be signalling the overall market heading lower. Mentally I'm feeling OK, slept well enough. Well I'm at the point where I'll have to be patient for the gold shares here. The dollar is oversold and was a bit higher today but it could have more to go on the upside, hopefully. Oil pulled back too. The stochastic on the gold shares is overbought, so I would expect some type of retreat. But in this type of environment, anything can happen. Plenty of time, so there's no rush but the entry is going to have to be correct. So we'll see what happens.
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