Sunday, November 14, 2010
The remaining trading days of last week saw the Dow with a slight gain on Wednesday followed by weakness Thursday and Friday. The summation index looks to have rolled over here and is heading down. We are short term oversold at this point but medium term neutral. Expiration week is upon us and it usually has a positive bias. GE fell along with the overall market and the open order that I left in got filled. It's the January 2011 GE calls. I plan on holding these until after the earnings are released in January. That is the game plan for now. Gold didn't do much until Friday when it got clobbered and dropped over $35. The gold shares themselves are actually holding up better than the metal here. That is usually bullish going forward. The US dollar finished the rest of the week with gains and put in a solid week. We have held the key area of 76 for now. Mentally I'm feeling great after some time away from the markets. Perhaps I'll take vacations more often. Plenty of economic data out in the coming week for the markets to chew on. A holiday week after that. I think that next week will tell if this decline is just a blip in the ongoing rise or the start of something more meaningful to the downside. We'll see what happens.
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