Monday, October 20, 2008
Continuing higher on a Monday as the Dow gained 411 points on average volume. Advance/declines are about 5 to 1. This should turn the summation index around as we begin to move higher on that index. The bottom for now is in. That's my opinion as it has been for a few days. That's not to say that I'm correct with that prognosis, it's just what I think. The market will go where it wants. Gold was up a couple bucks but the XAU rose over 9 points. ABX and NEM up over 3 points, with GG up 2 1/2. Volume pretty good for all as well. The gold shares either have to go up or the price of gold down to get the Gold/XAU ratio back to something resembling normal. I'd love to try and trade it again but I'm staying away for now. GE was up about a half on heavy volume. I like GE to the upside here. I'm keeping in my open order for December calls. Mentally I'm doing OK, slept well enough. A new option cycle and I've noticed some of the volatility premium is being sucked out of the option prices today. As we get back to a more normal market atmosphere, the option prices will shrink. That has to be taken into consideration. The game never gets any easier. Earnings will be coming out and that will be an individual stock mover for the next few weeks. On to tomorrow.
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