Friday, September 19, 2008
Today the US government changed the rules. It will now bail out everything and everybody in the name of... Really, I don't know. The Dow rallied on extreme volume, up 368 points. Advance/declines were 7 to 1 positive. What a wild week. This should turn the summation index back to the upside. It is hard to trade the indices when things get like this. In fact, it's basically impossible. The volatility is too much. More luck than skill. Gold lost over $30 on the futures, rallied a bit in the aftermarket. The XAU was higher by over 7 points though. ABX up 2 3/4, GG up 1 and NEM up 2. All on good volume. ABX is showing the most relative strength here. I put in an order for some GG calls, was not filled. I may switch to ABX. However I'm waiting for some type of pullback in the gold shares now. GE was up almost 2 on insanely heavy volume again. Too late for the calls here. Mentally I'm tired. Did not sleep much last night. It's been quite a week. Yesterdays volatility in gold led me to get out but there is still more room to go on the upside there in my opinion. The weekly charts on the gold shares look like they have put in a bottom. The weekly OEX chart has put in a hammer bottom on the candlesticks. So the end of the world for the indices has been averted or postponed. It's time for a needed break from all the market madness. I'll be checking things over the weekend and getting ready for Monday. But for now some rest.
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