Friday, October 26, 2007
The Dow rose 135 points today on heavy volume. Advance/declines were about 3 to 1 positive. The financials made a comeback and Microsoft was up about 10% on great earnings. The summation index should return to the upside after todays action. We are slightly overbought at this point. I do think we will get some type of decline at some point next week. So we'll see. Boeing didn't move and that isn't the best news with a market up over a hundred points. The weekly chart looks OK for now though. The problem is that we could just get sideways action. That will kill the calls. Gold soared over $16 today. It wasn't so much the dollar as it was international tensions. I think Turkey bombed Northern Iraq. The XAU was up over 5 points. ABX was up 3/4 and NEM had a very good day up almost 1 1/2. The volume wasn't anything special but these issues continue higher. They've been overbought for weeks and the earnings are out on Wednesday. I don't know, maybe there is still time to get some calls but it's risky. My thinking is that I'll have to think about it over the weekend. GE was up about 20 cents on light volume. I still want to get long there but not yet. The best case scenario is for GE to move back to its up trend line. We'll see if that happens. Mentally I'm doing OK. Next week will be interesting with the Fed and the employment report. I do expect a downturn at some point but then I feel that it will be up and away. But that is subject to change. The best I can do at this point is to go over everything during the weekend and come up with a game plan for next week. First a little break until Sunday and go from there...
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