Monday, October 22, 2007
The Dow bounced back 45 points today on heavy volume. Advance/declines were positive. We are still pretty oversold. I am expecting more near term upside. After that, who knows? I am really not expecting a dramatic down side move. I think the worst is over but I could be wrong. Gold lost over $8 as the dollar was stronger. The XAU lost over 4 points but came off the lows. ABX was down about 1 1/4 on average volume. NEM was a loser also. The gold shares have been due to drop for quite a while. They finally are. I think it will be a buying opportunity eventually. Earnings are out next week and perhaps I'll get some calls before then. I do believe the earnings will be good if not great. So we'll see. GE was up a touch on light volume. It, along with the overall market, was down early and came back. That is encouraging for the bulls. I am looking at Boeing, BA. The earnings are due Wednesday. It was up over 1 1/2 today on good volume. It is oversold technically. The options did not move that much today, which is puzzling. Also it was right at the longer term weekly up trend line this morning. If it holds, it should move higher. I'm thinking of getting the November calls. Mentally I'm not as focused as I should be. There are wildfires in the city today and I'm not able to concentrate so well. I slept OK but with smoke in the air it's hard to just focus on the stock market. But the market won't wait for me or anyone else. So I'll do the best I can.
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