Monday, June 09, 2008
We stopped the carnage for a day as the Dow gained 71 points. Volume was good and the advance/declines were negative. The overall market was weaker than the Dow. It seems as though we are just hanging around waiting for the next fall. Who knows? Maybe I'll try buying some OEX puts again. Summation index heading lower. We have the Fed beige book coming out this week along with retail sales and inflation data. So we will be moving around I suspect. So we'll see. Gold lost a bit of ground but the XAU rose 1 1/2. ABX was flat, while GG and NEM had fractional gains. Volume was lighter than Friday. I had an order in for the ABX calls again but it wasn't filled. Oil was off over $4 and the dollar rallied quite strongly. Gold held up pretty good considering. I'd kind of like to see some pullback in ABX to put on that trade but that is probably wishful thinking. GE was flat on good volume. Mentally I'm a bit tired, did not sleep all that well. Where we go from here now is the question. I think we are heading lower overall, perhaps lower than my original target of 610 for the OEX. There really aren't any reasons to buy here. Perhaps another short covering rally but that would be about it at this point. 9 days to go on the June cycle. I will try and not do anything stupid. The gold shares are what I'm looking at right now. But I'm not completely sold on that idea anymore after todays dollar action. But it's a long week and anything could happen. I'll check things tonight and go from there.