Tuesday, December 18, 2007
Up, down and back up again as the Dow gained 65 points on better volume then yesterday. Volume on a daily basis has tapered off from what it was a month ago. Advance/declines were positive. The summation index is still pointing down but I am bullish here. I really think that we are going higher from here. But what do I know? I think that if we hold here you can make a case for a reverse head and shoulders pattern on the daily OEX chart. So we'll see. 3 days left until December expiration. OEX calls again on weakness tomorrow? Probably not. Gold was up 8 bucks today and the XAU rose almost 3 points. ABX and NEM both posted nice gains. I'm starting to think that it might be time to pick up the gold shares. The dollar is overbought and the gold shares are oversold. I'm pretty sure a longer term signal was generated yesterday. We haven't reached the weekly up trend line in ABX yet but if and when we do, calls will be in order. GE rose around 30 cents on average volume. At least it was up when the market acted better. Still need a weekly close of at least 37.50 to stay in that trade. Not there yet. Mentally feeling OK. Got a good nights sleep. Trying to do the right thing here which might be nothing at all. Next week is going to be slow with the market in holiday mode. That will most likely erode the time premium off of the January options. However I do expect some type of pop to the upside in the beginning of next year. So the best course of action at the moment could be inaction. But I've been wrong a lot this year. We'll see. There might be some opportunity to pick something up with the end of the year tax selling. Time will tell.