Friday, October 01, 2010
The Dow rose 41 points today on average volume. Advance/declines were 2 to 1 positive. We opened higher and moved sideways for the rest of the day. My OEX puts are a touch in the red. We have been range bound for the week and I expect we will break out one way or the other soon. It has the feel of wanting to move higher. Beginning of the month money flows perhaps. I will probably have to dump these puts if we get any weakness early next week. Gold continues to set records as it gained another $8. The XAU rose 3 1/3. ABX up 3/4, GG gained 1/4 and NEM was higher by 7/8. Volume was about average. The dollar was weaker on the day once again. Perhaps the ABX call trade was really the way to go. The trends with gold higher and the dollar lower continue to persist. Very overbought on gold and very oversold on the dollar. That won't last forever but it remains to be seen when it will change. Mentally I'm feeling OK. 2 weeks to go in the October option cycle. Summation index starting to move up once again. That won't help the OEX puts. Perhaps it's just another mistake in the year of many. We'll find out early next week I'm sure. But now it's the weekend and time for a rest.
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