Thursday, May 15, 2008
Another good day in the markets as the Dow rose 94 points. Advance/declines were over 2 to 1 positive and the volume looks OK. The trend is up and we continue higher. Not the environment to be buying puts. If we continue upwards we'll be overbought next week. May try some OEX puts then but if the volume picks up to the upside it's a no go. The overall market continues strong as that's where the money flow is. Summation index higher. Gold had a good day as well, up around $15. The XAU rose 6 3/4. ABX up 1 1/3, GG up $2 and NEM up over 1 1/2. The volume was a bit better today. Just an oversold bounce or the start of something bigger? Well, it's too late for me because I'm out of the ABX calls. The dollar didn't do much today either. GE lost a touch on better volume. That issue is going nowhere. However I do keep an eye on it because it does sometimes lead the market. Mentally I'm doing a well as can be expected. Trying to put the terrible ABX trade behind me. I do have a scenario to get short the market here if it plays out. But the rise in prices seems to have no end at the moment. It could be more than just expiration related. Time will tell on that. Otherwise I have nothing else in the pipeline. June options have an extra week in them, premiums are higher than the normal cycle. Let's close things out for the May option period tomorrow.