Monday, January 14, 2008
The Dow gained 172 points on good volume. Advance/declines were 2 to 1 positive. There were some good comments from IBM, which helped the tech sector. Plus it's option expiration week. But that could all change tomorrow with the inflation data. However the summation index should be turning up again and perhaps this time with some conviction. So we'll see. We're still oversold on a medium term basis. Gold continues higher, up another 5 bucks and closing above $900. The dollar was weaker today. The XAU gained over 3 1/2 points. ABX had heavy volume but only managed to rise 15 cents. NEM had a good day, up 1 1/2 on heavy volume. The last time these 2 issues diverged like that the uptrend just continued on. We'll see what happens this time. Money continues to flow into the gold shares regardless. GE gained a 1/4 on lighter than average volume. Earnings on Friday. It will be a market mover, the direction is what's in question. Mentally I feel OK, got a good nights sleep. Not sure I'll attempt a trade this week but you never know. Perhaps in gold or some OEX puts towards the end of the week. Obviously the NEM calls could have been held for a longer time. But you have to make the decisions as you move along. It wasn't going to be something that I felt comfortable holding for a while at the time. Where we go from here is what matters now. Long weekend approaching also and that could play into the mix. So we'll see the early data and go from there.