Thursday, September 29, 2011
An up and down day as we opened higher, went lower and then closed higher by 143 points on average volume. The advance/declines were over 2 to 1 positive. Not quite sure of what to make of todays session. The overall market was weaker than the Dow. I'd still like to own some OEX puts before the employment report in a week. The summation index is moving back and forth with no real trend at the moment. I still have the open order in for the OEX puts but I'll probably cancel it over the weekend unless it gets filled tomorrow. GE was up 3/8 on light volume. GE was a proxy again today as it never went negative even with the market selling off. GE is once again getting close to its 50 day moving average on the daily charts. It is something to keep an eye on. Gold was little changed on the futures today but did sell off last night before coming back. The XAU was up 1/3. ABX and GG gained 1/3, while NEM was up a buck. Volume was light. The US dollar didn't do much today. Perhaps the gold shares are trying to put in a bottom here. However if my market prognosis is correct, we will see lower prices in the coming weeks. I could be wrong. Mentally I'm feeling OK. We had every reason to sell off today but somehow made a comeback. This portends near term strength. The ideal scenario for me would be to purchase the OEX puts next Tuesday or Wednesday on market strength. That is probably wishful thinking. We have been going sideways for about 2 months in the stock indices. The breakout, when it happens, is something to be a part of. I still think it will be to the downside but the longer we wander around here increases my doubts of that. I still want some November gold share calls as well. Tomorrow ends the week, the month and the quarter.
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