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Thursday, October 21, 2010

The Dow gained 38 points today on good volume. Advance/declines were negative. The overall market was weaker than the Dow. The market seems to be earnings driven for the time being. No more economic data this week. Todays numbers were mixed. No OEX trades for now but I'm leaning towards trying the puts again. Gold fell $18 today as the dollar was a touch higher. The XAU dropped 2 1/3. ABX and GG were both off 1/2, while NEM dropped 1 1/4. Volume was good here as well. Perhaps the long gold trade is finally unwinding. I'm still leaving in my open order for the November ABX calls. It isn't close to being filled yet. I'll adjust things going into the weekend if necessary or simply cancel the order and wait for next week. Mentally I'm feeling OK. The jury is still out as to whether this is an actual top being formed or simply another consolidation until we continue higher. The summation index is moving sideways. That could be a precursor to a drop in prices. Or not. Patience is the key for now regarding trading the OEX. The gold shares are now oversold, so we'll see what happens there.

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