Friday, August 06, 2010
The Dow sold off early with the disappointing employment report and was off over 150 points. However we made a late day comeback and the Dow closed with a loss of 21 points. Advance/declines were negative and the volume was light. The market has shown great resilience lately and wants to go higher. Summation index still moving to the upside. You cannot argue with the market. The only fly in the ointment is the volume but it is summertime. I'm still leaning towards getting some OEX puts for the autumn. Gold was up $6 and the XAU gained 1 2/3. ABX, GG and NEM were all higher by 1/2 to 2/3. Volume was the usual light here. The dollar was weaker on the poor jobs report and gold finally acted as it should in relation to the dollar. If we get a pullback in the gold shares, I may try the September ABX calls. The weekly charts in the gold shares are looking bullish. So we'll see. The reality is that I probably missed it though. Mentally I'm doing OK. So the jobs report has come and gone. We've got the Fed next Tuesday with the announcement on interest rates. The volume here is slow. It is hard for me to believe in this move higher having any staying power. I cannot fight the market though. 2 weeks to go for the August option cycle. I do not think I'll have any trades for the August options. But you never know. It's Friday afternoon in the summer. Time to forget about the markets for a while and relax.
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