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Thursday, August 20, 2009

Settling out on the Dow as it looks to be a gain of around 70 points on average volume. Advance/declines are over 2 to 1 positive. We've had a positive expiration week bias after Mondays drop. There was no follow through to the downside even when the overseas markets faltered. I'm still favoring the OEX puts when we get overbought, which could happen next week. We'll get through Friday and take it from there. Gold lost $3 but the XAU rose 1 1/3. ABX, GG and NEM all had fractional gains again on light volume. The gold shares are following the overall market at the moment. I still have an order in for the ABX September calls but may cancel it before the weekend. If the market does drop the gold shares will go with it. However, nothing is set in stone when it comes to the markets. There's a daily uptrend line in the gold shares that has held for now. We'll see what happens. Mentally I'm doing OK, could have slept better. It's getting near the end of August and things could slow down next week. But that's a guess. The new option cycle will begin and things will be pricey on the premiums. I'll keep an eye on things and we'll go from there.

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