Friday, May 16, 2008
Option expiration Friday and the Dow lost 5 points. We were lower early and came all the way back. Advance/declines were positive and the volume was average. It is a market that does not want to go down as we grind our way higher. We are hovering around the 200 day moving average for many of the indices. I still want to short things but the market has to set up right for it if I'm going to take the risk. Perhaps next week. Gold soared $20 today and the XAU rose 5 1/2 points. NEM led the way, up 2 bucks with ABX and GG up around a dollar. The volume increased. Now who would have thought ABX would be up about 10% in 2 days after I dumped the calls? Frustrating is what it is. The loss could have been cut substantially if I had waited. But the reality is that I never should have been in such a position. I find it interesting that NEM is leading the way here. The dollar was weaker and oil was higher. Perhaps the June gold share call options will work here. GE lost about 20 cents on good volume. Looking at GE longer term, it looks like it is about to break down here on the weekly chart. Perhaps a precursor for the market? That's a guess. Mentally I'm a bit tired, did not sleep well. Trying not to do anything stupid here but you never know. The market just seems as though it wants to go higher. If we break out above the 200 day moving average with volume, it should be quite a rise. That hasn't happened yet. Summation index continues higher and there are no divergences at the moment. I will try to not be too stubborn and listen to the market. That said, I could see a sell as early as Tuesday. We'll see. It's time for the weekend and a check of the charts. You've gotta keep moving on in the game.