Tuesday, December 02, 2008
Back to the upside as the Dow gained 270 points on average volume. Advance/declines were almost 3 to 1 positive. We opened a couple hundred points higher, came all the way back and then took off again. So volatility has returned. I'm still looking for some more downside this week. But who knows? It's been a crazy game for months now. Yesterday was about the most negative day for the internals as I've ever seen. We've got to be washed out at some point. Gold was up $6 and the XAU gained rose 6 points. ABX and GG were up a buck and change, NEM gained 2. Volume was average. Yes, I like the gold shares again but would like to see a better pull back to get the calls. May not get it. GE was the star of the day up over 2 on extremely heavy volume. Yes, I sold the calls too early but I will be buying them back if we get a retrace in price. The relative strength is very strong in GE at the moment. Overbought for now though but the money still seems to be going there. I'll keep an eye on it. Mentally I'm feeling good, slept OK. Still trying to be patient and wait for the employment report on Friday. Plenty of time in the option cycle. So we'll see what happens.
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