Friday, October 12, 2007
The Dow added 78 points today. Advance/declines were positive but the volume was surprisingly light. My thinking is that the bias will be to the upside early next week. But I could be wrong. Gold was down a couple bucks but the XAU rose over 2 points. My ABX puts are under water and I probably should have dumped them today. It's a cut the loss mode at this point. Perhaps I will roll over to November on those. GE had great earnings and sold off around 50 cents at the close. It was down over a dollar early. The volume was heavy. I think that waiting for GE to return to the weekly up trend line and then getting long would be the right strategy at this point. Mentally I'm feeling good. We got the inflation data and the retail sales today. They really didn't seem to matter much. We got a pop on the open and then just hung around all day. Technically, a light volume rally isn't the best thing to see for the bullish case. I might look to buy some OEX puts early in the week before the inflation data on Wednesday. I'll have to check things over the weekend. There are a ton of earnings coming out next week, so there will be opportunities to make money. Getting back to the overall market, the summation index continues higher. It's hard to fight that. There was a chance for it to roll over today but we continued to the upside. Yesterdays one day reversal may not pan out to the downside. So we'll see. It's the weekend and time for a break.
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