Monday, December 04, 2006
The Dow rose 90 points today on very good volume. Advance/declines were over 3 to 1 positive. New highs expanded. We have new recent highs on the S&P 500. Nothing seems to stop this market. We're overbought here but it could stay that way as it has recently. I do want to get some OEX puts but to buy them in the face of this isn't a good idea. At least I think it isn't. The Dow and OEX are lagging slightly here. The Nasdaq had a good day. I'm on the sidelines here. Gold didn't do anything but the XAU rose almost 2 points in sympathy with the overall market I'm guessing. I canceled the order for NEM calls. I still might do this trade but who knows. The gold shares, like the stock market, are overbought here. This type of trade looks good going out further, as it has for weeks. I'm waiting it out for a better entry I suppose. But in reality, this trade was missed. I'm not seeing open interest expand on ABX and NEM here, so I'm going to be a bit cautious. We'll see what happens. Not much else for today. Mentally I'm trying to get a handle on just exactly what is going on here. Less than 2 weeks now before expiration and I would like to make a decent trade. I'm not going to try and force things here though. Employment report on Friday and that is about it until the Fed meets. I'm going to look things over tonight and take it from there...
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