Tuesday, October 09, 2007
The Dow went to new highs again, up 120 points on good volume. Advance/declines were over 2 to 1 positive. The trend is up and staying there. It doesn't seem to matter how overbought we get. The Fed minutes were viewed as a positive so off we go. Enjoy the ride. Gold was up around $5 and the XAU rose almost 5 points. ABX was up over a dollar and my order for puts was filled. The volume in ABX was good. This trade already has the feel of one that isn't going to work. I'm thinking that we have consolidated in ABX and could break out. We'll know more tomorrow. Like the overall market, the gold shares have remained overbought for quite some time. So we'll see. GE tacked on 50 cents but the volume was light. There was a lot of volume in the calls though, so perhaps somebody knows something about the earnings due out on Friday. I'm thinking of getting some calls for that event myself. Mentally I'm a bit apprehensive about this ABX trade. It's my first fill in a while and I'm not feeling good about it. I really think that if ABX continues higher tomorrow, I'm dead. We'll see. Otherwise the overall market looks good. Every minor setback has been met with buying. Perhaps it will just continue to run up into the expiration. The summation index continues higher. Perhaps GE calls are the play for Friday. Time will tell.
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