With one hour left in the trading day the Dow quickly came down off of the highs of the day and in a matter of minutes broke the 10000 level and the S&P the 1045. Looked a little oversold at first at now appears to be correcting. The big names in Consumer Technology are getting hammered, DELL, SNDK, and RIMM among the biggest losers, with financials looking relatively split. Precious metals are off the highs of the day but are still posting attractive looking gains….
I’m pleased to say that the market did not go through a knee-jerk reaction to the Fed announcement today which hopefully is a sign that everyone is starting to realise that the Fed is not going to change policy and that we should stop acting like a bombshell is going to be dropped every time one of the governors says something.
Out of all of the gold miners today, HL has had the highest volume. This is significant because typically they are lagging the sector in volume but I’m starting to see that this is changing rapidly. HL’s time is coming very soon and I’d highly recommend getting in on the next pullback if at all possible. The recent options activity for the 5.00 Dec 2010 calls and the out of the money 7.50, 10.00, and 12.50 Jan 11 calls are off the charts, which means someone is expecting a huge demand increase for the common stock by winter or even this fall.