Monday, November 09, 2009
Powering to the upside to start the week as the Dow gained 203 points. Advance/declines were 5 to 1 positive however the volume was light. This rally has everything but volume but you cannot argue with price. Todays action should turn the summation index higher and the trend will be to the upside. We are short term overbought here. But I would not try to short things here. Gold was up another $5 today and the gold shares soared with the XAU up 7 points. ABX and NEM were up around 1 1/2, while GG was the star of the day, up 2 3/4. All on heavy volume. The trend here is up but we are short term overbought as well. If we get any pullback I'll try the gold shares calls again for November. The dollar got clobbered today and that trend remains down. Money is and has been flowing into gold. That's the play for now. Mentally I'm a bit tired, could have slept longer. It looks like we will head higher into the November expiration unless something dramatically changes here. I am lamenting getting stopped out of the GG trade. I did have a feeling of it possibly being a super trade and it could have been. But I have to move on and I am. It's happened before. It does let you know that there are excellent money making opportunities in the game. That's why we play.
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