Thursday, July 19, 2007
We managed to close at the 14000 level with the Dow gaining 82 points. Volume was heavy and the advance/declines were almost 2 to 1 positive. It's been a pretty good summer so far. I'm on the sidelines with the OEX. Gold was up 4 bucks and the gold shares continue this incredible run. The XAU gained over 3 1/2 points. ABX and NEM were both higher on good volume. If and when there is a pullback you can get long these issues. Perhaps next week as things don't usually go straight up forever. GE tacked on another 1/4 on average volume. More earnings after the bell which should set the tone for tomorrow and it's expiration Friday. Mentally I'm feeling OK. There isn't much to do now with the next option cycle beginning on Monday. Just keep an eye on things and see what happens. ABX and NEM are out with earnings the week after next. Perhaps want to be long before. NEM also looks like it is finally breaking out of the multi-week down trend line. The options are pricey though. And these issues are over extended. But things can remain overbought for quite some time. We'll see.
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