Thursday, May 29, 2008
3 days in a row to the upside as the Dow gained 51 points. Advance/declines were positive and the volume looks to be average. We were up well over 100 at one point. I still have an open order for some OEX puts. Perhaps today was the day to purchase them. If we hold up here I will probably get some tomorrow or Monday. However it's possible that the snap back is over. I don't know, we will just have to see what the market does from here. Gold lost $23 bucks today as the dollar was higher and oil got clobbered. The XAU erased yesterdays reversal and lost 7 1/2 points. ABX, GG and NEM were all lower by a buck and change on average volume. We haven't taken out the recent lows in gold yet but it appears to be on the way. It's possible that support will be stronger here for the dollar as interest rates continue to rise. As money leaves the bond market it is finding a home in the stock market and that could undermine the OEX put trade. We'll see. GE was up a touch on heavy volume again. I can't make out what's going on there really. Oversold, staying there and no trend. Not planning anything with that issue at the moment. Mentally I'm a bit tired, did not sleep all that well. End of the month tomorrow so it's anybodies guess what happens there. We should see a bit of support with beginning of the month money flows next week. Perhaps I'll wait for that to get the OEX puts. Or perhaps not. The summation index should be back to positive after today but we'll see. It's been a lighter volume rally so far and that what I was looking for. How long it goes on is the key. Can we squeeze a couple more days out of it? Stay tuned.