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Thursday, April 28, 2011

Higher we go as the Dow gained 72 points on good volume. Advance/declines were positive. GDP was a bit better than expected. Nothing has changed. The trend is up. GE was little changed on light volume. No trades there for now. Gold was up $14 and more in the aftermarket. It is starting to look like we are going to go parabolic there as well. The XAU lost 1 2/3. The Gold/XAU ratio is just about at another buy signal. ABX, GG and NEM all had fractional losses on average volume. I'm leaving in the May ABX call order. I did adjust the price down. Not sure if I will leave this open for the weekend. The dollar is deeply oversold and staying there for now. The dollar is due to bounce and that could be the optimum time for the gold share calls. It would have to be a very short term trade. There is also the possibility that the US dollar simply remains oversold. I am going with the Gold/XAU buy signal. We'll see if it holds up. Mentally I'm doing OK. Summation index moving higher and the stock indices continue moving up. The Dow transports are approaching all time highs. This bodes well for the overall market going forward. Look to buy calls would be my advice for now. Don't fight the advance. The market knows more than you or I do.

1 comment:

Hugh Kimura said...

I think the dollar will be oversold for awhile. Not sure what can turn it around at this point.