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Friday, October 05, 2007

The Dow rose 91 points today on average volume. Advance/declines were 3 to 1 positive. We were up around 150 on the Dow and got some profit taking late in the day. The employment number was in line with expectations and we rallied. It could have been any number and we would rally because the trend is up. The OEX calls were higher but not that much considering the up move. So on to next week. We should see some follow through early in the week. Gold rose another $4 today and the XAU was up almost 3 points. I'm beginning to think that we are simply consolidating before moving higher here but I'm not sure. The volume continues to come into the gold shares but we are overbought. ABX was up a third on good volume and NEM was up a half. There was heavy volume in the NEM calls. I am still considering the ABX puts and will check the charts over the weekend. It isn't as clear as it was a week ago. GE really did not participate in todays rally and that is not a good sign. It was up 7 cents on light volume. Perhaps it is taking a rest before the earnings next week. You'd really like to see GE up in line with the overall market. So something is going on here. Either the rally isn't to be trusted at this point or GE will not have the earnings that are expected next Friday. It's all a guess. Mentally I'm feeling OK. I have a couple of ideas for the two weeks remaining on Octobers options. Can't feel too confident without going over everything this weekend. I'll try and come up with some type of game plan and take it from there. The summation index continues higher and there really hasn't been any reasons to sell. It's hard to fight that. I think the release of the Fed minutes on Tuesday could be the next real market mover. We'll see...

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