Friday, September 18, 2009
The Dow gained 36 points today on expiration Friday. Volume was average while the advance/declines were positive. How long can the rally last? Summation index heading higher but it's about as high as it gets. Overbought and staying there as well. I certainly don't have the answers at this point. Rolling into the October option cycle. I'm staying on the sidelines for now. Gold lost 3 bucks and the XAU dropped 3 points. ABX, GG and NEM were all off around a buck on average volume. The dollar was a touch higher today. My thinking is that my next trade will be in the gold shares. That's the idea for now. Could change of course. Mentally I'm a bit tired, could have slept better. So I booked another sizable loss this week and am moving on. Or trying to at least. The trading is never easy but that is the nature of the beast. We are just about at some long term down trend lines in the major indices and we moved back up here pretty fast. I cannot believe that we are just going to continue higher here through these trend lines without some type of consolidation or pullback. But I have been wrong on my market prognosis a lot this year. I'll look things over this weekend and take it from there. For now it's time to step back for a couple of days and clear my mind heading into next week. A break and some rest should do the trick.
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