Thursday, July 03, 2008
We ended 73 points higher on the Dow in a holiday shortened session. Volume was light and the advance/declines were negative yet again. The overall market was weaker than the Dow. The employment report was weak again. The market remains oversold. I'm still waiting for one of those multi-hundred point short covering up days. It isn't happening. Gold fell over $10 as the dollar rallied after the ECB meeting. Short covering in the dollar there for sure. I got another buy signal for the gold shares early. I bought some GG calls. The XAU dropped 1 1/2 on the day but was much lower early. ABX, GG and NEM all lost ground today on lighter volume. GG was off 3/4. My thinking is that the past 2 days was the snap back to the breakout but I could be wrong. The volatility in GG has been higher relatively lately, so I chose that over ABX. Either one will work if the theory is correct. GE was up 40 cents on light volume. I really thought about selling out the calls today and taking the loss. Regardless of the earnings next Friday. I will think hard about that over the weekend. Technically it's got room to go on the upside but the technicals haven't meant anything in that issue lately. Mentally I'm feeling tired, did not sleep as long as I would normally. It is really time for a break here and I'm looking forward to the long weekend. There haven't been any summer doldrums yet. My thinking is that it will be volatile into the July expiration and then settle down for a bit after that. But who knows? I'll be checking things over the weekend but for now it's time to relax.