Thursday, October 02, 2008
It was back to the downside today as the Dow lost 348 points on good volume. Advance/declines were about 6 to 1 negative. Waiting on the bailout vote and who knows what happens after that? It is a crazy and volatile time. We are going back to test the lows I guess. But it is just that, a guess. Because these are some strange times indeed. Gold lost over $40 today and continue a touch lower in the aftermarket. The XAU was obliterated, down 20 yes 20 points in a day. ABX and GG both lost over $6 today. That's 20% of their value. Unheard of but there it is. NEM dropped 4 1/4. Volume was extremely heavy on the gold shares. Of course the GG calls are under water. However I bought some more. The Gold/XAU ratio is so out of whack that the buy signal is screaming. It probably wasn't the smartest thing to do. So we'll see. I can't believe the drop in the gold shares today but it happened. I don't know what it means. The dollar was stronger today but it's been up more than this and the gold shares haven't fallen apart like today. Again, it is a crazy time in the markets. GE lost 2 1/3 and the volume was astronomical. I mean it was 10 days volume compressed into one day. If it is a forerunner of things to come then we are going to collapse again. The volatility is off the charts. Mentally I feel pretty good, slept well. I don't know what else I can say here to fully grasp the uniqueness of the situation. It's unprecedented really. I now think that I should just listen to myself and get on the sidelines for a while. There is nothing wrong with that. Cash is King. It's not impossible to trade this kind of market but it isn't necessary either. When nothing makes sense perhaps it makes sense to do nothing.
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