Friday, November 02, 2007
The Dow made a comeback today, up 27 points. I'll get to the volume and A/D's a bit later as there is a delay in the numbers again. We were down over 100 at one point so it's a one day reversal to the upside. Can it last? So far it seems like a rerun of the last 300+ down day followed by a small rally. Perhaps we will build a short term bottom again. The employment number came out better then expected but the results weren't what I thought. Gold soared even with job strength and was up over $14 to climb above $800. The dollar lost even more ground. These themes just seem to go on and on. The XAU was up over 6 1/2. NEM gained over 2 and ABX was over 3 points higher. Both had heavy volume. It is getting to be like a broken record but the money continues to flow into the gold shares. I'm not looking at the puts there anymore and will buy calls on any light volume pullback. This is something I should have done long ago. These issues remain overbought and stay there. 2 weeks left on this option cycle. GE was unchanged on average volume. It mirrored the overall market as it was lower most of the day. No trades there at the moment. BA was up over a buck but the options barely moved. I still cannot figure out the option movement with this stock. It doesn't make any sense. There doesn't seem to be any connection with the underlying issue. Boeing also seems to do better when the market goes down and then doesn't participate in the rallies. The weekly still looks good though with 2 weeks to go but I am getting impatient. Perhaps it's time to dump them and put my attention elsewhere. Mentally I'm a bit tired, did not sleep well last night. I do think that whatever bottom we form here will be a good one and that you can look forward to higher prices in the weeks ahead. That's my guess at this point. The summation index continues to point to the downside so there could be some more volatility in the near future. As always, keep capital preservation in mind. The advance/declines were slightly negative and the volume was heavy. Time for a breather over the weekend. A check of the charts and then back at it Monday morning...
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