Monday, October 19, 2009
The market continues to climb as the Dow gained 96 points. Advance/declines were about 3 to 1 positive and volume looks to be a bit light. We are at some long term weekly downtrend lines in the major indices. If we break through to the upside, it's going to be more of the same up, up and away. Hasn't happened yet but at this rate, nothing is bothering the market. We'll see what happens this week. A lot of earnings reports due out. Gold was up $6 and moved higher in the aftermarket. The XAU gained 1 1/2. ABX, GG and NEM all had fractional moves to the upside on light volume. The dollar hit fresh lows. This song and dance remains the same. Again I wonder that this can't go on forever. But it is for now. No sense in fighting the trends. Mentally I'm feeling OK, slept well enough. No trades on the horizon. An extra week in the November option cycle. We remain overbought and that hasn't produced a sustained drop in quite some time. So I'll be on the sidelines until further notice. Perhaps try something in gold if we get a pullback. But I've said that before.
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