Monday, November 24, 2008
Continuing higher today as the Dow gained 397 points. Volume was lighter than Friday when it was expiration related. Advance/declines were about 7 to 1 positive. Has the low now been put in? Maybe. Perhaps last Thursday was the final shakeout. I'm guessing that it was but I've been wrong quite a lot lately. That doesn't mean we won't head back down again to test it. It's been one crazy game lately. Thanksgiving week can have a positive bias at times. But that doesn't mean anything now. So we'll see. Gold added another $25 and the XAU rose 6 points. ABX up a buck, GG 1 1/3 and NEM 2 3/4. Volume was heavy again. I am a believer in this move. However we are now at the weekly downtrend line for the gold shares. I would expect some pullback here and that could be a chance to get long. There's also a chance that we just keep moving to the upside here but there was some one day reversals put in with regards to ABX and GG. I'm going to be looking to get long there though if the opportunity presents itself. GE was up 1 1/4 on very heavy volume again. The GE calls showed a profit again and I got out. It may be early but the option pricing just hasn't made sense lately. It was a 60% gain. I may try and buy them back again cheaper in the coming days. Or not. If the market continues higher, GE should go along. However I would expect some sideways activity at the least considering we've gone up pretty good in the past 2 days. Mentally I'm feeling OK. Slept well enough. It's a holiday week and I expect things to slow down after tomorrow. But with this market, who knows? I'm satisfied at the moment with exiting the GE trade. I can now concentrate on perhaps a better situation. Money has come back into gold and that is where I'm going to look. But you never know. The dollar did get pounded today and oil had a pop. We'll have to see if it was just a one day wonder or the beginning of some meaningful correction in the dollar.
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