Thursday, October 14, 2010
The Dow lost a point today on average volume. Advance/declines were negative. We were down 70 points during the day but came all the way back. The economic data was mixed. We're still overbought. Thought about getting the OEX puts but the prices had moved too much. Will remain on the sidelines with regards to the OEX. Gold gained another $7 to another record high as the dollar was weaker today. The XAU lost 1 1/4. ABX, GG and NEM all had fractional losses on average volume. The US dollar is about to hit a key support level at 76. If we bounce from there, gold should come down from it's extreme overbought level. That may be an opportunity to try the gold shares again. However even with this recent spike in gold, the gold shares haven't had the proportional rise. Perhaps the GLD options would work better next time. We'll see. There's also the possibility that the 76 level won't hold on the US dollar. Mentally I'm feeling OK. Option expiration tomorrow and we move on to the November cycle.
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