Thursday, December 04, 2008
The Dow moved lower today ahead of the employment report. We were down 215 points on average volume. Advance/declines were over 2 to 1 negative. We came back at the end as we were down over 300 at one point. I would expect lower prices tomorrow but the market seems to be acting better here. I'm looking to purchase some calls as I've said before. The weakness can last into Monday perhaps but I expect next week to be higher. That's the idea for now. It will change as the market moves. Gold lost $5 and the XAU dropped 2 3/4. ABX and GG were off 3/4, while NEM gained a touch. Volume was average. I'd like to get long the gold shares going out into January. When to purchase them is the question. Perhaps next week, maybe tomorrow. GE lost around 60 cents on average volume. We are overbought now for GE. However I still feel the January calls can be purchased on weakness. I could be wrong. I may even try the December calls there again. I'll have to check the charts tonight. Mentally I'm a bit tired, did not sleep well last night. My thinking is that opportunity is here. How to take advantage of it is the question. I may just wait until Monday depending on how tomorrow turns out. So the employment report is the next thing that the market has to deal with. We'll see.
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