Thursday, October 26, 2006
The Dow up 29 points on good volume again. Advance/declines over 2 to 1 positive. It's a broken record. Will nothing derail this thing? Overall market stronger than the Dow. What can I say? We're on a momentum run and there is no stopping it at this point. I'm thankful that I have stopped trying to short it. But still, this is insane. We've seen it before but I certainly had no idea that it would happen now. Gold was up over 9 dollars and the XAU was off fractionally. The opposite of Monday when gold was down big and the XAU rose. Perhaps we will cool off here for a bit on the XAU. I still have an open order for NEM calls. Might switch to ABX if it drops enough but that may not happen. Earnings a week from today on both issues. Open interest expanded more on NEM during this rise so I'm leaning that way. But who knows? Microsoft announced after the bell and has sold off just a touch. GDP tomorrow and my hope is that it is stronger than expected and the dollar firms leading gold lower. The Dollar was lower today. The XAU is overbought here so I need a pullback to pick up some calls. Even so, this trade may not work but I am going to give it a try. Mentally not much to say today. Just waiting for an opening on the gold long side. Trying to stay positive and do what is necessary. Just have to keep going here...
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