Tuesday, August 11, 2009
The Dow continued lower today, down 96 points on average volume. Advance/declines were more than 2 to 1 negative. This action should start to turn the summation index lower. It doesn't mean we'll get a full scale decline just yet but I think it does mean that the upside is limited from here at this time. If we get a rally from here, I'll try the OEX puts before expiration. All eyes and ears are on the Fed tomorrow. Gold was little changed today while the XAU lost 2 1/3. ABX, GG and NEM were all down on light volume today, with GG leading the way. We are oversold here on the gold shares and I might buy some calls tomorrow before the Fed announcement. It would have to be a short term trade because if the market falls as I expect, the gold shares will probably fall with it. Mentally I'm doing OK. I have to cut things short today due to an appointment. We'll see what happens tomorrow. I'll check the charts tonight and determine if a play is warranted.
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