Monday, May 18, 2009
A very good Monday as the Dow gained 235 points on average volume. Advance/declines were 6 to 1 positive. Often times the Monday after expiration does the opposite of the expiration. I believe that this is what we saw today. As long as the volume doesn't pick up to the upside, I'm going to get some OEX puts on a retest of the recent highs. We'll have to see how the next couple of days plays out. We also have a long weekend coming up with the Memorial day holiday. And it's early in the option cycle. Plenty to ponder. Gold lost about $10 today but the XAU was up 1/2. ABX and GG were little changed but down early. NEM lost 1/4. Volume was extremely light. The dollar was weaker today yet gold fell anyway. Working off the overbought short term condition in the gold shares. If the overall market drops as I presume, the gold shares will fall with it in the beginning. I'm in no rush to make a trade here but when we get oversold I'll be more interested. Of course that could all change tomorrow. Mentally I'm feeling OK. Questions loom over exactly what we have going on here. I'll have to check the volume when things settle out tonight. You can't argue with price though. I may have to be patient here as well but who knows?
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