Tuesday, May 06, 2008
It was a turnaround Tuesday as the Dow opened up lower by about 100 points and came all the way back to finish up 51. Advance/declines were positive and volume was average. Declines are being bought here for the moment. You cannot fight that because it's a losing battle. I don't have a decent signal one way or the other but I do know we are moving higher and the trend is up. Gold was up about $4 today. The XAU rose 2 3/4. ABX, GG and NEM were all higher but well off of their highs. ABX came out with good earnings and the stock only rose 1/2. I did have a chance to exit the ABX trade with a small profit and I really should have. The options are now at break even. The only reason I'm holding them is that the stochastic has turned up and is still oversold. Even with that I think I should have gotten out today. I suppose I'll wait for the ECB meeting on Thursday now but time is running out. GE lost 20 cents on average volume. Not much going on there and that's been the story with GE lately. Mentally I'm a bit tired, did not sleep well. Nothing doing at the moment with the OEX but that could change. I don't like being stuck in a nowhere trade, which is the case with ABX. The battle is always with oneself. You do the best you can and move on. That really is what I should do with this trade. If the earnings can't provide the energy to move higher, what will? A fall in the dollar would help but it's been much stronger relatively lately. So I'll just have to go on from here.