Wednesday, July 15, 2009
The rally continues and it appears to be for real as the Dow gained 256 points. Advance/declines look to be about 8 to 1 and the volume was better than it has been. No sellers, only buyers. The summation index is back to the upside. Quite an expiration week so far. We closed near the highs again. Now this is a summer rally but we've come pretty far, pretty fast. Overbought on the short term now but it may not mean anything. We'll see. Gold had a real good day as well, up $16 as the dollar got weaker. The XAU rose 6 1/4. ABX, GG and NEM were all up over a buck with GG leading the way. Volume picked up a bit from lately as well. The weekly USD chart could be beginning the final leg down of a five wave pattern. If so, gold should have a decent multi-week rally here. So the gold shares could be a buy for me on weakness. Or it might be too late. Time will tell. Mentally I'm feeling OK considering I've missed this move. Slept pretty good. You've always got to keep moving along in the game. Frustration is part of it and like I said yesterday confidence is very important. Being able to take advantage of opportunities is key. I haven't been able to do that thus far this year. I'll need to work harder and pay better attention. Getting some confidence back wouldn't hurt either.
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