Tuesday, May 01, 2007
The Dow gained 73 points today on heavy volume. Advance/declines were positive. It was another new high for the Dow. The overall market lagged again though. I am thinking of buying some puts and will perhaps do so tomorrow. There's always a chance we just keep going up here though. But the breadth hasn't been there for a while. Today could just be the beginning of the month money flow. Hard to say. Gold lost over $6 today as the dollar was higher. The XAU lost less than a point, which is a positive for that index. ABX reports earnings tomorrow. I'm not sure this is the time to get long gold. I am going to wait for the signal that has worked before in the past that deals with the price relationship of gold to the XAU. We are almost there now but not quite. Getting back to the overall market, I'm probably going to get some SPX puts this time around. The OEX just isn't moving as much right now. Probably due to the fact that it is laden with big caps and they are outperforming at the moment. It's risky but that's trading for you. Mentally I'm feeling good and looking forward to this next trade and how I'll manage it. There are no guarantees but I'll do my best and see what happens. GE has been holding up here and that is supporting the Dow and the OEX. Volume has been heavy in that issue also. That makes me hesitate on the thought of buying puts here but it will not be the overriding factor. We'll see what tomorrow brings...
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