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Thursday, April 05, 2007

The Dow was up 30 points today on light volume. Advance/declines were positive. I never trust light volume rallies but it could just be a case of pre-holiday getaway. The employment report is out tomorrow with the market closed. I guess we'll have to wait and see what happens. We are overbought and I am expecting weakness and am surprised it didn't happen today. Gold was up a couple bucks and the XAU lost a half a point. This was not good. The gold shares, including ABX, opened higher and closed lower. So we got a one day reversal. There was a point today where the calls I own got back to what I paid for them but then fell back to be in the red again. There are 2 weeks left and the weekly charts look constructive. That is the only thing keeping me in this trade at the moment. Because the daily chart is overbought and todays action wasn't positive. I think that perhaps this was too long of an option trade. We'll see what happens next week. Mentally I'm looking forward to having a 3 day weekend. Once the employment number is out, that should shed some light on the short term and I can go from there. Looking ahead to next week, I will be looking for a spot to purchase some OEX puts. The Fed minutes are out in the middle of the week and the producer inflation will come out on Friday. That's it for now and it's on to the weekend.

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