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Friday, October 08, 2010

The Dow rose 58 points today, climbing back above 11000. Volume was average and the advance/declines were 3 to 1 positive. The employment report was weaker than expected but it didn't matter. I dumped my OEX puts for around an 80% loss but it's worse than it sounds. Not a lot of money involved in that trade and within the guidelines that I set a month or so ago. But it's still another loser in the year of many. As usual the market goes where it wants. Don't fight the Fed was the moniker of market maven Marty Zweig. That seems to be the case for the recent positive market action. One week to go in the October option cycle and Monday is a bank holiday. My guess is that the powers that be will keep things propped up here for another week. Gold was up around $10, gaining back what it lost yesterday. The XAU was up 3 1/2. ABX rose 7/8, GG up 1/3 and NEM fell a touch. Volume was light to average. The dollar was off a bit today but not much considering the weak employment data. I really do not want to chase gold right now at these levels. Very overbought both long and short term. I will have to wait for at least some type of pull back before trying anything here. At least I should. There's always a chance that I'll do something stupid. Mentally I'm doing OK, a bit tired and need a good nights sleep. The weekend should take care of that. Not much else to say really. It's the beginning of October and we haven't seen any sustained downside since August. The seasonality pattern of the stock indices isn't working this year. I don't have any solid ideas at the moment. It would probably be best for me to stay on the sidelines next week but you never know. I do have an idea for some longer term GE calls but it may be too late for that after this weeks action in that issue. So it's another weekend to ponder the markets and try and come up with something profitable for the future. However it's Friday afternoon and time for a break.

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