Week Review

Overall Market:

1. Market took a break Friday, Nasdaq was down 1.2% for Friday.
2. Judge the overall market, I think it does not have much power left to move higher. There are two possible moves: side way or down.
3. Stocks have gone up for eight straight months, and corporate earnings have risen by double-digits for 17 consecutive quarters.
4. It has now been 938 days since the S&P 500 had a one-day 2% decline. The last one was on May 19, 2003 when the Index fell 2.49% on the day. This is the longest streak since 1928.
5. On the other hand, it has currently been 155 days since the S&P 500 was up 2% or more in a day, the current one was the longest since 1996.
6. So it's more likely to break to the down side.

Precious Metal:

1. Gold broke the $660 that's been the resistance for the last 8 months, if it can hold above the $660 level for a few days, we can talk about $700 in the next few months. This is either a new leg up, or just another failed attempt to break out.
2. BTW, gold's move is without help of oil and dollar during the last 8 months. Oil moved down during the last 8 months and dollar against Euro is almost flat. This show gold's strength, it started to separate itself from oil and other commodities, which is in itself a good news.
3. Last week I continued to change and adjust my holdings and as a result, SSRI, FRG and AEM are up. Cash, GG, PAAS are down.
4. I think it's a consolidation for PM shares now, and if gold breaks out, it will take these stocks with it, regardless if they're overbought or not. Sector trend always overcomes individual stock's trend.

QID and RIMM put.

1. QID closed up to $53.18 from $52.52 a week ago, thanks to a 3.2% gain on Friday, without it, it's another down week. I'll continue to hold and believe it's near the turn for the market.
2. RIMM closed up from $132.82 to 134.21 a week ago, but it's in much worse situation for my put since it touched $138 and $139 during the week. I added a few June ITM put and March ITM put when it's around $138.
3. RIMM looks like in a range between 140 and 120 since Nov. 2006. It's likely to head back to $120 in the next few days. I won't add put again and may take some profit when it hits 120.