Friday, May 29, 2009
We closed the month with a positive bias as the Dow gained 96 points on average volume. Advance/declines were over 2 to 1 positive. Most of the gain came in the last hour and last few minutes. I canceled my order for the OEX puts. I might try again next week but it looks like we've moved sideways and are poised to head higher. I could be wrong. We haven't broken the channel we're in just yet. I'll need to go over everything this weekend. Gold continues in a straight line up, gaining $17. The XAU was up almost 5. ABX up a buck, GG rose 3/4 and NEM up 1 1/2. Volume was good. North Korea is threatening to blow up the world again. When the news hit early in the week gold didn't move. It did today. The dollar got whacked again and continues in free fall for now. We are at $980 for gold and $1000 seems inevitable. Do we blast through there? I don't know. Very overbought in gold here. I'll try and wait for a pullback. Mentally I'm feeling OK, slept well. We are about at the top of the recent channel in the S&P. It looks like we are about to break out to the upside. I could make a case to go either way here but the upside seems to be the way the market wants to go. There will be lots to think about over the weekend. For now it's time for a break.
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