Thursday, November 03, 2011
We continued higher today as the Dow gained 208 points on average volume. The advance/declines were 4 to 1 positive. Still dealing with the daily drama from Greece. The market moves up and down according to that news for now. We do have the employment report out tomorrow but unless it's something out of the ordinary, it won't mean much. That's my opinion. It's still a European headline moving market. We are moving off of the early week short term oversold condition. GE was up 3/8 on average volume. Just biding my time here as there is no imminent trade yet in my mind. I could be wrong. Gold had a good day, up $35 on the futures as the US dollar was lower. Gold is also getting some of the flight to safety money I believe. The XAU rose 5 7/8. ABX up 1 1/2, GG gained 1 1/4 and NEM led the way higher by 2 3/4. Volume was average. My ABX calls are back to being solidly in the black. Short term overbought and staying there for ABX. The weekly charts still look constructive though. There's still 2 weeks left in the November option cycle. I don't want to get too greedy though. Mentally I'm feeling OK, slept well enough. It's been a volatile week so far for the stock indices. Anything can and will happen in this type of environment. I don't have any OEX trades in mind right now as I'm focusing on ABX. I am going to try and time the exit properly but we all know how that goes. ABX has almost had a straight line up move in the past 2 weeks and that won't last forever. We'll see what happens tomorrow. There is still plenty of time left in this trade but I don't think I'll be holding it until the last day of the option cycle. I do have a target in mind but it is more technically related than price related. We'll see.
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