Gold and other commodities had nice moves today as India purchased 200 tons of gold from the IMF. I'd be happy with 200 pounds of gold...or a call option trade on BNI before Warren Buffett announced his takeover today. Those were some nice moves. I panicked a bit when I saw how strong the Dow Transportation index had come back today. It looked like it was leading the market down. Then I made the connection with the Warren Buffett news to acquire BNI. All the railroad stocks gapped up off of that news. Which stocks make up the Dow Transportation Average? BNI, CSX, NSC, and UNP. Four of the 20 stocks are directly or indirectly related to the Warren Buffett acquisition. I would completely ignore that move on the Dow Transports. I think gold could go higher, but I just don't want to buy after a move like today. I'll look to see if it pulls back a bit in the next few days. I still like my put option trades on the SPY, DIA, and RUT.
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