Friday, November 24, 2006
The Dow lost 46 points on extremely light holiday volume. Advance/declines were positive. Hard to say what today means with such light volume. The dollar has gotten killed over the last 2 days so perhaps todays decline has something to do with that. Gold was up $9 and the XAU gained over 3 points. I want to be long the gold shares but I hate to chase the move. The volume was light and it did not close near the high. But the weekly charts say buy and I think I might get some calls if we get a bit of weakness on Monday. I'm going to try December and not January. I did put in an order today just to test the market and it didn't get filled. I don't usually do that but I did today. If it did get filled I'd still want to own them because I think we will continue to see strength there. The dollar chart looks like it is breaking down. That should help gold. We'll see. The only problem here is the fact that it was a holiday week. Not all the players were in the markets. So the moves we have seen may not be legit. There was some major violence in Iraq again and I think that helped to support gold here also. The gold market can sometimes just start going and it continues to run. It also has some crazy volatility that works both ways. I'll check things again over the weekend but the plan for now is to get long even with the recent move we've seen. Mentally I feel good with the holiday and all. Next week could be interesting. There is also a lot of data out on Tuesday and I'd like to be positioned before then if I plan on doing anything.
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