Monday, January 26, 2009
The Dow gained 38 points today on average volume. Advance/declines were 2 to 1 positive. We were much higher earlier in the day, sold off and then came back. Exactly where do we go from here? That is the question. I have no answer at the moment. Summation index still heading down but that could change. End of the month coming up. We aren't overbought or oversold at the moment short term. Patience will be required. Gold was up $13 on the futures today but the XAU dropped 1 1/3. ABX, GG and NEM were all down and the volume was heavy. The dollar took a beating today but the gold shares did not respond. I still think they are a buy for the February option cycle. I'm keeping my eye on them. Mentally I'm feeling OK. No hurry to do anything at this point. I'll try and stay patient and take it from there. My focus is on the gold shares at the moment. So we'll see.
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