Friday, September 17, 2010
We closed the week with a slight gain of 13 points on the Dow. We opened higher on the day and then just drifted. Advance/declines were positive and the volume was better than it has been. That could be expiration related. We're still overbought here. Summation index continues higher. Nothing has really changed. We either break out on good volume to the upside next week or we begin a decline. I still have the open order in for the October OEX puts. I'll go over things this weekend and re-evaluate this idea. Gold was up a couple of bucks today but the XAU fell 1 1/8. ABX, GG and NEM moved fractionally one way or the other on what goes for average volume these days. My ABX October calls are still in the red. Perhaps I'll have to dump them on Monday if I'm looking for downside in the overall market. However if we break out to the upside, then this trade will probably work. More things to ponder over the weekend. The dollar was up a touch today but had a bearish week. Mentally I'm feeling OK. I think that next week will be the key to where the stock indices are heading. We are at the resistance on the S&P 500 once again. If we break through there could be what's called a stock melt up. Money will pile in. In the opposite scenario if we fail to get above the resistance, sellers will reappear and down we will go. I'm still in the latter camp but I realize that the market will go where it wants. I'm going to have to make up my mind this weekend and go from there. Seasonality favors a decline here. So we'll have to wait and see. For now it's Friday afternoon and time for a rest.
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