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Thursday, September 03, 2009

Kind of a bounce today as the Dow gained 64 points today, most of it in the last hour. Advance/declines were over 2 to 1 positive, while the volume was average at best. I expected a rally at the end of the week and hopefully this is the beginning of it. The trend is down though in my opinion. That said, I bought some OEX calls today for the bounce. They are slightly in the black and I will sell them tomorrow or Tuesday depending on the action tomorrow. I don't think that today is the beginning of some kind of sustained rally but I could be wrong. Gold continued higher on the breakout today, up almost another $20 on the futures. The XAU was up 7 1/3. Regardless of what happens tomorrow it has been quite a week for gold. ABX and GG were up 1 1/2, while NEM rose 2. Volume was heavy again. I am leaving in an order for some calls in case we get a pullback. Any weakness in the gold shares can be bought. We are almost at $1000 for the precious metal and that may be a spot to take a rest. But it looks like we are going nowhere but higher at this point. Mentally I'm feeling tired, have not slept well 2 nights in a row. So it's the OEX calls for now as the focus. I really think I'll be dumping them tomorrow because the summation index is still pointing to the downside. But if tomorrow is a huge up day, who knows? I'm hoping that the gold shares will give me a point to get in and make some money. Trying not to lament that miss too much. There's always other trades but that one looks to be the best of the year so far.

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