Thursday, May 31, 2007
The Dow lost 5 points on heavy volume. Advance/declines were positive. We did open higher but couldn't hold it. My thinking is that it was end of the quarter selling. We saw this in a big way last month. But that's just a guess. The GDP number was revised downward. Employment data tomorrow. The overall market was stronger than the Dow. Summation index has begun to turn back up. Gold was up $7 today and the XAU rallied big, up over 3 and 1/2 points. ABX and NEM were up on heavy volume. I think the move was in sympathy with the dollar. The weaker GDP was viewed as bearish for the dollar even though it didn't move much. I did not get the usual signal here to get long gold. Although the gold shares were oversold. So my thinking here is that this may not be a significant move in gold. I could be wrong. In fact, I could have missed it. Time will tell. One thing for sure, the volume was strong and it is hard to ignore that. Mentally I'm feeling fine with a good nights sleep. I'm still looking for a June cycle trade. Perhaps it will be some puts if we go higher tomorrow and Monday. I'm also looking at GE but the options aren't cheap enough for me. I am going to try and not force things here. If something sets up then by all means I will try and take advantage of it. It is never easy. I'm doing the work and keeping my eyes open. We'll see how the week closes...
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