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Tuesday, September 04, 2007

The Dow was up 91 points today on light volume. Advance/declines were 2 to 1 positive. We sold off about 30 points in the last half hour. It looks as though all systems are go to the upside here. It's got everything but the volume. Summation index moving higher and the overall market stronger then the Dow. I might still get short before the employment report but we'll have to see what happens tomorrow. We are almost to my upside target of 700 for the OEX and I'll try a short there perhaps. Gold continues to rally and was up $10. The XAU was up 4 1/4. The volume on gold itself was heavy. Not as much for the gold shares. ABX was up almost a buck. The weekly chart has turned positive. There was a lot of volume in the October 35 calls. It's overbought here on the daily charts but it could stay that way for a while. I will wait for a pullback, hopefully. GE was up slightly on average volume. I'm going to try and be patient there as well. Mentally I'm feeling OK. I did sleep pretty good last night. I am trying to figure out just what could happen here. I checked previous reading of the McClellan oscillator that had the same general numbers as we have had here recently. There is a case to be made for one more run to the downside. There are still 3 weeks for the September options. So I am leaning to a trade involving OEX puts at the moment. So we'll see what happens. This month has a tendency sometimes to be strong in the beginning and weak towards the end. It has happened before. For now it's a matter of waiting for the target and then deciding what to do there.

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