Monday, April 06, 2009
Weakness for Monday as the Dow lost 41 points on average volume. Advance/declines were negative. We were getting to overbought so a pullback wasn't out of the question. I don't think it's anything major. I'm looking for the market to continue higher into early next week and then a better drop. That's what I'm hoping I guess because the next trade will be OEX puts before April expiration. If it sets up properly. So we'll see. Gold lost another $25 today and the XAU fell 4 1/4. We were lower than that but came back. ABX lost 1 1/2, GG off 3/4 and NEM down a buck. Volume was light. GG and NEM finished well off their lows so perhaps we'll bounce tomorrow. ABX was at its low so the picture is mixed. I'm going to wait until the technicals get oversold on the gold shares before the next attempt at the calls. The dollar was stronger today as well. As the market rallies the safe haven play of gold loses its luster. I still like the gold shares from the long side longer term but for now it doesn't look like the place to be. I could be wrong and often am. Mentally I'm doing OK. I have somewhat of a game plan going forward but it will have to set up right. We could just bounce around here as well considering it is April. A short week here as well, the market will be closed on Friday. So I'm going to try and be patient for the OEX puts. We'll see what happens.
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