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Tuesday, March 29, 2011

The Dow gained 81 points today. So much for the expected decline. Advance/declines were 2 to 1 positive. Volume was nothing special. The market is overbought and staying there. We are back in the mode we were in before the Japan earthquake. The market just plows higher. The only caveat that I can see is the volume. It has been anemic. I do not trust light volume rallies. But you cannot argue with price. GE was up 1/8 on light volume. It has been a laggard here. I have no trades in mind for GE. Gold lost a couple of bucks and the XAU was flat. ABX, GG and NEM had fractional moves one way or the other on very light volume again. So the volume question comes up here as well. I'm still considering the ABX calls but I'd like to go to the May option cycle. We'll see. The technicals are giving no clear signal. The dollar didn't move much today. So I'll try and be patient here for now. Mentally I'm a bit tired, did not sleep well. I expected weakness early this week and the market just continues to get more overbought. There's no fighting it. At least I haven't been trying the OEX puts here. The market will go where it wants regardless of my opinion. I'll have to remain on the sidelines until I get a better handle on things.

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