Thursday, October 30, 2008
Another positive day as the Dow gained 190 points on lighter volume. Advance/declines were 4 to 1 positive. End of the month tomorrow and I think we'll see some selling. But I could be wrong. Summation index has turned around to the upside again and hopefully will continue in that direction for the bulls. The bottom is in for now as I have said repeatedly lately. The question is if we get a decent rally or just move sideways. Time will tell. Gold dropped $15 today as the dollar stabilized. However the XAU gained 4 3/4. ABX, GG and NEM were all higher at least a buck or more on good volume. It looks like the fall in the gold shares has ended as well. The Gold/XAU ratio is still way out of line so there is room for the gold shares to move higher. I'm staying away from there for now though. GE was up a touch on average volume. The GE calls are still in the black but we are short term overbought. The price action on the options has been screwy lately also. I'm going to hold them until the beginning of next week and take it from there. Mentally I'm feeling OK. Haven't had the focus that I need lately but that is changing. I've also been looking at some individual stocks to purchase on a longer term basis. However, that isn't the same as trading so I'm not so sure. Looking at it though. We'll get through Halloween tomorrow and go from there.
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