Thursday, March 15, 2007
The Dow gained 26 points today on lighter volume. Advance/declines were 2 to 1 positive. Perhaps we are just working off the oversold condition but more likely todays action dealt with the expiration. The news on inflation was bad but we still moved higher and that doesn't make any sense, really. I had an order in for some OEX puts again. My thinking is tomorrow the inflation data will be bad as well. But I canceled the order and will stay on the sidelines with expiration manipulation in progress. Gold was up over $4 and the XAU gained almost 3 points. ABX was up a half and the calls I own are back to even. Perhaps this trade will work out but it's early. Gold has held the uptrend line so far and that is encouraging. But with wholesale selling of assets that we've seen lately, anything can happen. Mentally I'm a bit tired today without a full nights sleep. Otherwise I'm doing fine considering that I missed that OEX trade earlier this week. But you have to persevere and move on. An extra week in the April options and also a holiday thrown in there. Could make for some slow trading. I might be out of this gold trade sooner rather than later. We'll see how the week closes out.
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