Friday, December 07, 2007
It was a day of rest for the market today with the Dow up 5 points on light volume. Advance/declines were about even. We most likely stop going up here for a while as the market is overbought. I think we sell off after the Fed on Tuesday. However I don't think any long lasting declines are in the cards at the moment. Any selling will be a chance to get some OEX calls. I don't think it's worth it to try and play the declines because the trend is up. The summation index is pointing higher. The Employment report was a non-event as the numbers weren't skewed one way or the other. Today gold fell over $6 but the XAU barely moved. Again this index isn't following gold itself which makes it hard to trade right now. ABX and NEM were both off about a half on so-so volume. Sidelines for now. The US dollar has stabilized here lately which means no big moves for gold like we've seen in recent months. GE didn't do much on less then average volume. The options just hung around also. It looks like the weekly up trend line has held for now. But next week could be a different story. There is a GE analyst meeting next week which should be a mover. However it may be overshadowed by the Fed. Time will tell. Mentally I'm feeling OK. 2 weeks left for the December option cycle. I might make another trade this year if something looks good. I'm leaning towards the OEX calls at the moment. The weekend is here, time to check the charts and come up with a game plan for next week.
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