Today the market decided to move up over a hundred points in the Dow but the volume was unconvincing at under 1.5 billion shares on the NYSE. On a rare day, the NASDAQ volume was slightly less than the NYSE volume, not by much but it was less. And, today the Dow managed to go back above 10,200 in what has become a very boring market over the past month with the Dow trading in a narrow 400 point range. We have seen these big days like today of over a hundred points with no follow through in either direction. So, for those of you trading every day, I hope you've been on the right side of your trades. For those of us waiting to see something move in one direction for more than a couple days, we have been waiting for a long time.
Unfortunately, this is not an easy market to make any money in and we suffer due to our leveraged short positions in the tech companies. We continue to believe that we are near the end of this boring period and we will finally see the market move down into the fall but we still are waiting.
Gold stocks continued to get blasted today with the HUI down another percent. PAAS closed well under 13 today at 12.35, near the low tick of the day. Last week this stock was over 14 so we have seen over a 10% drop in the price in a week. We are very tempted to buy this stock tomorrow morning. There is a fairly good opportunity here but we are going to wait another day to see what tomorrow brings. There should at least be an attempt to get back to the declining 50 day SMA which is about three points away at over 15. It's your call at this point.
Dow Industrials: 10,252.29 +112.17