Friday, November 05, 2010
The Dow gained 9 points on good volume. Advance/declines were positive. The employment report came out much stronger than anticipated. We are short and medium term overbought and staying there. If the employment report is to be believed perhaps we will start to hear about the economy moving too fast. Maybe the coming easing from the Fed isn't needed. That's a guess as usual. I expect some type of pull back in the next 2 days but nothing that will derail this market. Gold was up another $14 today despite a stronger dollar. The XAU gained 3/4. ABX, GG and NEM had slight fractional moves one way or the other on average volume. Gold is about at $1400. With no signs of slowing down. I do still like the gold shares but they will need to take a rest at some point. Or maybe not. We're overbought there again but it hasn't meant anything lately. I'm still leaving in the GE January call trade to see if it will get filled. I'll need to see some weakness there for my price to be hit. So we'll see what happens. This is a longer term option trade that I usually don't do. Hasn't been filled yet and it could be another case of too little too late. Mentally I'm doing OK. Another losing trade this week but it's nothing new. That should just about do it for me this year. There would really have to be something that stands out for me to put on another position for 2010. And I don't see that happening. I'm also going on vacation next week for the first time since 2006. The market continues higher with lower interest rates and an accommodating Fed. Until that scenario changes the trend is up. We are also entering the favorable 3rd year of the presidential term. It's a time to be positive. The weekend is here and time to take a break from the markets.
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