Friday, September 07, 2012
It was a sideways trading day with a bit of a pop at the close. The Dow was higher by 14 points on better than average volume. The advance/declines were 2 to 1 positive. The employment numbers were weak but the market didn't care. We're heading higher. There is no overhead resistance. We should at least run up into the September option expiration. Declines can be bought. If we get to short term oversold, I might try the OEX calls. However people will be buying nay dip because they have missed the move, so getting oversold would be difficult. GE was up 1/4 on lighter volume. It is the same story here, we've broken out above resistance. Calls are the trade here. I'll check the option premiums over the weekend. Gold had a stellar day as the US dollar broke a longer term uptrend line that was a year in duration. The gold futures were higher by $34. The XAU gained 5 1/2. ABX up 1 1/8, GG rose 7/8 and NEM added 3/4. Volume was good. I'll be looking to buy the October gold share calls again if we see some pullback. Overbought and staying there. All signs point to higher prices for gold as well. Mentally I'm feeling a bit tired and of course discouraged for selling the October ABX calls yesterday. But you have to keep moving on in the game. The stock indices have broken out to the upside and we'll have to see how far they can run. We might get a pullback to the breakout point but we also might not. I'll be looking for long entries over the weekend. We've got the Fed next week and that will be the catalyst for the next move in the markets. There was heavy volume in the ABX October 40 calls yesterday and today. That was a precursor for higher gold share prices when it happened with the October ABX 34 calls in August. It appears to be the case again. I'll try to come up with a game plan over the weekend to get some gold share calls again. For now it is Friday afternoon and time for a break.