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Tuesday, January 16, 2007

The Dow rose 26 points on a bit light volume. Advance/declines were even. We are remaining overbought and I expect a down day tomorrow or the next day. GE was higher a touch today on heavy volume. I probably should have just sold out here today but I didn't. I am thinking at this point that we will break out to new highs on the earnings Friday. That is probably more hope than anything else but the technicals aren't completely blown out to the upside and there is a chance. If we hit my target before then, I'm gone. As I said before, I have been in this trade way too long. Gold was off a buck today and the XAU lost 1 3/4. The volume was light here. I am thinking of getting some February calls on ABX or NEM. However Freeport reported its earnings today and they weren't as good as expected, which could spill over into the gold shares. The dollar was higher today also. I'm probably going to let this week go by before doing anything but you never know. Inflation data out tomorrow and will be a market mover. Also earnings are coming in this week from some big names. It will be interesting but I am going to stay bullish here for now. Oil continues to fall and the next stop is $50. We'll see what happens when it gets there. For now I will continue to focus on GE and gold.

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