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Friday, January 18, 2013

Continuing higher for expiration Friday as the Dow gained 53 points on average volume.  The advance/declines were about 2 to 1 positive.  The summation index continues higher.  We're still overbought and still moving higher.  My guess is that declines will be bought.  There is nothing to stop the rally at this point.  I do however expect some weakness early next week as we do need a pause.  That would be a chance to get some calls as the uptrend continues.  GE reported earnings today and the market liked what it heard.  The stock rose 3/4 on extremely heavy volume.  My GE calls turned a 125% profit but it could have been much better as I sold early in the morning at the worst possible time.  The trading is never easy.  I could have done another 75% to 80% if I would have held on longer.  Doesn't matter now.  We have a valid break out through the downtrend line on the daily charts.  The next technical expectation would be a snap back towards that line before moving higher.  I'll probably try the February GE calls here on the snap back if it occurs.  Gold was off 4 bucks on the futures as the US dollar had a strong session.  Once again we should have been much worse on gold for the day with such dollar strength.  The inverse correlation between these two just isn't happening now.  The XAU was off a fraction.  ABX and GG were little changed while NEM gained 1/2.  Volume was light.  I am leaving in the open order for the February ABX calls however I adjusted the price lower.  I'll have to reconsider this trade over the weekend because gold still continues to be dead money even with this weeks $20 gain.  Mentally I'm feeling a bit frustrated as the GE trade was a winner but the lousy exit leaves me with mixed feelings.  On the one hand it starts the year off right with a winner.  However since the gains should have been much more, it leaves a lot to be desired.  My trading is always a work in progress.  The stock indices continue to the upside and there seems to be nothing coming up to derail the party.  We'll see if we can continue the bash next week.  Gold had a good week but the gold shares were actually lower on the week.  Perhaps I should focus my energies elsewhere.  It will be another thing to ponder over the long weekend.  For now it's Friday afternoon and time for a break.

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