Monday, August 30, 2010
The Dow gave back what it gained on Friday. The loss was 141 points on very light volume. Advance/declines were 3 to 1 negative. I placed an order for some OEX puts overnight and it was not filled. I adjusted the strike price down and replaced the original order. In downtrends, sometimes rallies appear from nowhere, as was the case on Friday. However the downtrend soon reasserts itself. That seems to be the case today. Volume was very weak though. Summation index still heading lower. Gold was flat today but the XAU lost 1 1/4 points. ABX and NEM were little changed, while GG lost a bit over 1/2. Volume wasn't much here either. The gold shares continue to show amazing relative strength. I think that the next Gold/XAU ratio buy signal that is generated will be my cue for the gold share calls. We'll see. Mentally I'm feeling frustrated. I cannot seem to get filled on the OEX put order. Perhaps I'm just trying to be a bit too cute. Sometimes you just have to buy it and take your chances. I'll need to get something done before the employment report on Friday. End of the month tomorrow and that could bring even more selling. Lots of data out this week, so there will be reasons for price movement. The trend is down and remains so until further notice.
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