Monday, November 06, 2006
The Dow soared 120 points today. Volume was average and the advances beat the declines by 3 to 1. Are we going to new highs? Or is this the bounce I was looking for and that's it? These are questions that must be answered. I must admit I did not expect such a powerful rally out of nowhere. The OEX calls are making money but now the question becomes when to sell them. The market will be overbought by Wednesday. But it can stay that way for quite a while as just seen. Will we rally after the election? I don't know. I've moved up the stop-loss order so this trade will be profitable. But by how much? I really think I'm going to bail out by the close Wednesday unless something happens to change my mind. Gold was down a couple bucks today and the XAU sold off by a point and a half. I do want to get long some gold shares and will probably go out until next month or January. That is my thinking right now. NEM seems to be stronger than ABX this time around. That is what I'm seeing lately. We'll see. Mentally I'm feeling good after the weekend and having the market move as expected. But there is still much work to be done and the exit of this trade is the next challenge. It never is easy. I'll have to check todays statistics and go from there. I'm also still looking at SUNH for the long term. If it gets back into single digits, I'm a buyer and maybe even if it doesn't. But the question for now is if todays rally was for real and we should have some answers in the coming days.
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