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Thursday, January 17, 2013

A nice move higher today as the Dow gained 84 points on average volume.  The advance/declines were 3 to 1 positive.  A day late from what I expected but that means nothing now.  We were up over 100 during the session.  Overbought, staying there and the summation index continues to the upside.  This won't last forever but we can enjoy it from the call side while it does.  Expiration tomorrow and anything can happen.  GE was up over 1/8 on heavy volume.  We were much higher but came off of the best levels of the day.  My GE calls are still in the black but that could change with the earnings out tomorrow morning.  We did break through the downtrend line that has been in place since October but fell right back down.  Tomorrows price action will determine the outcome of this trade.  Gold was higher again today, up $7 on the futures.  The US dollar was a bit lower today.  The XAU dropped 7/8.  ABX, GG and NEM once again had fractional moves one way or the other on average volume.  My open order for the February ABX calls was almost filled this morning.  Perhaps this trade will get done next week.  Mentally I'm feeling OK.  The trend remains up and the small stocks are leading the way and that is bullish.  One day left in the trading week before a long holiday weekend.  The GE trade will be completed tomorrow.  Earnings will determine the outcome.  It could go either way.  Gold has had a nice week so far but the gold shares have not participated.  That usually isn't bullish going forward.  I'm leaving in the open order for the February ABX calls regardless.  The gold shares remain oversold and that condition won't last forever.  On to expiration Friday.     

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