Friday, February 01, 2008
Even a bad employment report can't keep this market down as the Dow gains another 93 points on good volume. Advance/declines over 3 to 1 positive. The nation is losing jobs but the market is in bull mode. Which is why it's good to stick to the technicals. The news can be interpreted any way the market wants. We are getting overbought here but declines should be used to get long. However if we keep going straight up we will hit resistance soon and that would be a shorting opportunity. We'll see. Gold lost $15 today and the XAU fell 1 1/2 which wasn't too bad. ABX and NEM were both down on good volume. Have they turned down for now? Don't know. HL didn't do much. I'm thinking about the calls before the earnings in expiration week but I'm not completely sold on the idea anymore. It's possible that the dollar just might be putting in a short term bottom here. That's a guess but if correct it won't be bullish for gold. GE was up over 80 cents on good volume. I was thinking about getting some puts here on GE, short term. We are just about at longer term resisitance on a weekly basis. Will we continue higher and bust through the weekly down trend line? I would think we'd need a pause first since it has been straight up for days now. But I could be wrong. INTC up another 65 cents on OK volume. Just as GE has done, INTC is moving straight up. There hasn't been a chance to get the calls. Will these issues continue on a straight line up? That usually doesn't happen but it could. So caution is warranted at this time. However, if we are up in the beginning of next week, I'm going to look to go the other way. That's the thought at the moment. I'll have to check things out over the weekend. Mentally I'm feeling OK, slept well enough. The market would have been up even higher if MSFT had not put in a buyout for YHOO and lost 2 bucks. You get the feeling that all the sellers are out at the moment. There is no more selling the bad news. The high volume reversal last week remains valid. Time for the weekend and a break.