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Wednesday, October 18, 2006

The Dow rose 42 points on heavy volume. Advance/declines were positive. The overall market was weaker. The NASDAQ was down and the S&P was only up a point or so. The inflation data was benign. I think we are approaching a top here. I may try and short this thing before expiration. We'll see. Perhaps I should hold off and I will let the action dictate what I do. Very risky. Gold was little changed, down a little. The XAU lost over 2 points and the volume picked up a bit. I am still looking to get long ABX calls for November at some point. Earnings on November 2nd. We'll see. I think that is the next play. Volatility is returning to the overall market. That could bode well for the puts. Or not. Earnings continue to come out decent so far. They will probably be good next quarter as well with the sell-off in energy. Oil broke $58 today. Mentally I'm feeling fine, trying not to do anything stupid between now and the end of the week. The Fed meets next week and I expect no change. Otherwise it's a waiting game now, watching gold and the gold shares.

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