Monday, February 23, 2009
And down we continue to go. The Dow lost 250 points on average volume. Advance/declines were over 5 to 1 negative. So when will it end? Are we going to zero? Of course not. However we are in the fall apart zone it seems. Oversold and staying there. Both short and medium term. A bounce is overdue. But it hasn't happened. It will, but when? It also seems as though it is a sell anything point as well. GE lost another 50 cents on extremely heavy volume. GE is at 8 dollars and change. They will not be going out of business. Incredible. My GE calls are under water. The stop loss order is in and at this rate will be hit tomorrow. So on it goes. Gold lost $7 and the XAU dropped 4 1/4. ABX, GG and NEM all lost about 1 1/4 on average volume. I do think the gold shares will work again at some point but I am going to wait until they are oversold and we get a pullback in gold itself. So it's waiting game there for now. Mentally I'm feeling good, slept well. So where do we go from here? I wish I knew. It is possible that we could crash here and that would be a washout for a while. However I'm a believer in some type of bounce. Short covering or bargain hunting or whatever. I placed the GE trade in that scenario and I'm sticking to it. Tomorrow should be interesting to say the least. Will the slow melt downward continue?
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