Saturday, March 28, 2009
A day late for Fridays commentary due to some appointments yesterday. The Dow lost 148 points on lighter volume. Advance/declines were 3 to 1 negative. We are a bit oversold on the trin here short term. I do think we are going to go higher but there is a lot of resistance at around 425 on the OEX. Summation index still pointing higher. The volume on the up days for the most part is greater than the volume on the down days. So we'll see. Gold lost over $15 and the XAU dropped 4 1/4. ABX lost 3/4, while GG and NEM each lost over a buck. The volume was light here though and the gold shares have the same positive volume trend as does the overall market. I still would like to try the gold shares for the April option cycle and perhaps will purchase some calls if there is weakness next week. That was the original plan to try and get long before the employment report. The dollar has stopped falling at the moment though. It is never easy. The weekly and daily XAU charts are overextended here so it's a tough call. Mentally I'm feeling good here on Saturday. Slept well and it's a day off from the hustle and bustle of the usual trading day. End of the month and the quarter coming up early next week. I'm still in the bullish camp for now but this has been a crazy market. I'll continue checking the charts this weekend and take some time to relax. Back at it on Monday.
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