We got a small bounce today with the Dow up around 35 points. Volume was expiration heavy and the advance/declines were 2 to 1 positive. OEX calls could have been purchased today for a profit. I stayed on the sidelines. Gold did not move much today, it was up a little. The XAU was up quite well though, almost 2 points. These two have disconnected recently and haven't been in sync. I don't have a reason but would guess it has something to do with the expiration this week. ABX and NEM were both up on good volume. I will purchase some calls on one of these issues next week. I'd like to get a good price but they are expensive with a 5 week option cycle for November. If and when they get to their up trend lines I will be purchasing calls. I still believe the trend is up for now and that this theory will work. I will hope for a pullback in gold to around $410 and see what happens there. It's a tricky play. The dollar has gotten weaker this week and that seems to be the key for gold. We had a good sell-off in the precious metal and it has come back. I interpret that as bullish and hopefully correctly so. Like I said, I'd like to see the options get cheaper and then make a purchase. Patience, yes. But I don't want to be left behind either. GE was up a tad today but I think the market has lower to go here and will take GE with it. I'm still looking to January there. The weekend has arrived...
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