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Monday, July 16, 2007

The Dow gained 43 points on average volume. Advance/declines were 2 to 1 negative. Which was strange but it is options expiration week. We are pushing to 14000 on the Dow. Inflation data is out the next 2 days. I don't think we will see much on the consumer side. Not sure about tomorrows producer number. Gold lost a buck today and the XAU shed 1 1/2. Both ABX and NEM lost some ground and the volume was decent. I am looking at the calls there. GE was up about a half today and that helped the Dow. Volume there was OK but we are really getting extended in that issue. I'm not looking to short GE but it is due for a rest. That said, it's also possible that it could get one last rise in expiration week before it takes a rest. But that's a guessing game. Mentally I had a good nights sleep and have a general idea of what the next trade will be. Whether or not the markets cooperate is another story. There are a lot of earnings coming out this week and we haven't seen the usual summer doldrums yet. Perhaps we won't this year...

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