Friday, June 01, 2007
The Dow was up 40 points on average volume. Advance/declines were almost 2 to 1 positive. So on we go from new high to new high. Nothing seems to be able to stop this market. The trend is up and there is nothing to change that. We are short term overbought. I am thinking of getting some puts on any strength Monday for a short term trade. If we get a light volume rally I will most likely give it a try. Gold followed through big-time with a $10 rise today. The XAU was up over 2 and a 1/2 points. ABX and NEM rose on good volume. I will maybe try and get some gold calls on a pullback next week. I'm not sure. The dollar didn't do much today but there was some news about the European central bank capping gold sales. So I need to check things over the weekend and take it from there. I did not see the usual good gold buy signal in this move, so I'm a little leery of it. The economic data today also was a bit stronger than expected so there's not much chance of a rate cut anytime soon which would weaken the dollar. Mentally I'm trying not to feel bad about missing the gold move. I had been looking at it but the signal just wasn't there. Otherwise it's the weekend so I'll try and relax a little. GE was down a touch today and the calls don't look cheap enough for me yet. So it's on to checking the charts and perhaps some OEX puts on Monday or Tuesday...
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