Monday, July 09, 2007
The Dow gained 38 points on average volume. Advance/declines were slightly positive. The overall market was weaker then the Dow. I'm pretty sure we are going to see a pullback here. I think we need a little rest before we move to new highs. That's my guess at the moment. Gold was up $7 today and the XAU rose another point and a half. The XAU has pretty much gone up in a straight line here and that can't last forever. I do think you can get long on a pullback and I most certainly will. There is money coming into the gold shares in a big way. NEM did not get the follow through that I was expecting. It ended up a quarter on good volume. It did better early in the day and that is when I dumped the calls purchased on Friday. This was a short term scalp type of trade that I really don't normally do. My entry could have been a lot better. But if you could make over 20% on your money every weekend, you would do it too. However opportunities like that don't show up every weekend. ABX rose a half on heavy volume. I think my next trade will involve August calls of that issue. We'll see. GE didn't do much again today. Earnings there on Friday. I'm tempted to buy some cheap out of the money calls but probably won't. I did look at some OEX puts today but I really think if we get a pullback, it will be short and shallow. Mentally I'm feeling OK. A bit tired but I have an idea of what I'm going to do. I really don't trade to just make 20% as the NEM trade just realized. So I'll be keeping an eye on things and see what the market has to say in the next 2 weeks before expiration.
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