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Monday, July 02, 2007

The Dow rose 126 points today on summer Monday light volume. Advance/declines were 4 to 1 positive. We are going higher here most likely. The summation index has now turned to the upside. We will probably set new highs this month. We are getting the beginning of the month buying spurt. Tomorrow the markets will be closing early. If the market doesn't drop when we get terrorist attacks, it is going to go higher for whatever reasons. Gold was up 8 bucks today and the weekend overseas bombing had to help. The dollar was weaker today also. The XAU was up over 3 points and ABX tacked on another 3/4. Volume wasn't that great but it is the summer and a holiday week. I am thinking of getting the July calls for ABX at this point but it has moved pretty good since I was looking at it. I do not like to chase things but this could be one of those times when I do. We are not seeing any type of pull back in ABX. My thought here is that there are just no more sellers. It's risky, yes, but it just might pay off before expiration. We'll see. GE was basically unchanged and you would have liked to have seen it participate in a 126 point up day. The July calls still have a lot of premium in them. I'm on the sidelines there. Earnings are out at the end of next week. Mentally I'm feeling fine. What I need to do now is look for things to get long because higher is the way we are going. However with the holiday in the middle of the week, it skews things. Employment report out on Friday. Usually it is a big mover but it is summertime.

1 comment:

Unknown said...

Hey,
I've got me about two bucks I need to invetigate. Can you tell me what optionals (put or unputs) I can make me a bundle of green with.
Thanks,
Squirrel Killer