Thursday, October 11, 2007
It was an interesting day on Wall Street with the Dow losing 63 points on heavy volume. Advance/declines were negative. We were up over 100 at one point and then just started to drop. We were down over 100 too. It's a one day reversal which usually means lower prices to come. I have no idea why it happened. Perhaps the inflation data tomorrow will be higher then expected. But it is all just a guess. Perhaps it means nothing and we will continue on our merry way. Gold soared over $10. The trade deficit was lower but the dollar didn't rally and in fact went lower. ABX was higher early but fell back with the overall market and then made a comeback. It was that kind of day. The volume there was huge and ABX lost a dime. The XAU was up over 5 points but ended up only a quarter. I really think we are making some kind of top in the gold shares here. But I've been wrong before. GE lost 40 cents on average volume. I almost bought some calls when it dropped but decided against it. There is a lot of premium left in the options due to the earnings announcement tomorrow. Once that happens the premium will be sucked out of both the calls and the puts. Mentally I'm feeling OK. I actually like it better when the market is volatile. There are more opportunities. Tomorrow should be interesting. We'll see what today was all about. Whether it was a one day wonder or if there is something brewing again. We have the usual positive bias for expiration week upon us, plus earnings. So things could get interesting.
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