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Tuesday, August 25, 2009

Overbought and staying there again as the Dow gained 30 points on average volume. Advance/declines were positive. Once again we were higher early and then came back. It's possible that we'll get one more up thrust and then head down from there. Or we could just head lower from here. But I'm pretty sure that the upside will be limited from here near term. The negative divergence on the RSI for the OEX is taking shape. My open order for the OEX puts wasn't filled and I'll probably be leaving another one for tomorrow. Gold gained a couple bucks and the XAU was up 3/4. ABX, GG and NEM had fractional gains on light volume. The dollar didn't do much but oil was noticeably weaker. The scenario here remains the same, I'll get long the gold shares on weakness. That should occur if the market takes a rest here soon. We'll see what happens. Mentally I'm tired. Got up early today for jury duty and it was a tortuous day to say the least. But it's over now and the markets won't wait and don't care. The OEX puts look to be my next trade. The timing is everything. It is almost at the point where patience isn't going to help. But not yet. We'll see how tomorrow unfolds.

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