Monday, March 22, 2010
A positive start to the week as the Dow gained 44 points on average volume. Advance/declines were positive. The rally continues. The much debated health care bill has finally been passed in Washington. The market doesn't seem interested overall, although some health care issues had nice gains today. The indices are still overbought here but that hasn't meant anything lately. No OEX trades for now. Gold lost $8 but the XAU gained 1/2. The gold shares continue to outperform the metal itself. ABX was flat, GG lost 1/3 and NEM gained 2/3. Mixed again. Volume was light. Perhaps NEM will lead the way higher again. The dollar was off a bit but not much. I'm leaning towards the gold shares as my next trade. Perhaps going out to the May cycle. We'll see. They sold off early and came all the way back today. We'll see if there is any follow through tomorrow. Mentally I'm feeling good, slept well. Just beginning the April option cycle. No rush to do anything yet. The market is overbought and has been. The summation index is starting to move sideways. It doesn't mean we have to drop here. Sometimes markets continue higher as the summation index builds a top. It could take weeks. Time will tell.
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