Tuesday, May 05, 2009
The market remains strong as it tried to sell off today and came back late. The Dow did lose 16 points on average volume. Advance/declines were slightly negative. I would like to get some OEX puts here but probably won't. But you never know. Overbought now and we could stay there for a couple of days. Perhaps if we hold up for the rest of the week I'll give it a shot before the employment report. But the trend is up and you must respect that. Gold did little today and the XAU was up 2/3. Volume was light once again as ABX gained 2/3, GG lost 1/2 and NEM was up 1/4. The GG calls are still in trouble and the only hope at this point are the earnings out on Thursday. When it gets down to hope the odds are that the trade is dead. Mentally I'm a bit tired, did not sleep as good as could be. Power outage here on Thursday and that is a factor. The market is strong here regardless of the data lately it seems. However the summation index is getting to the top of where it can go. That doesn't mean a big sell off per se but it does mean that the upside from here will not be as dramatic as it has been, in my opinion. But I could be wrong.
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