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Thursday, April 11, 2013

Continuing higher as the Dow gained 63 points on light volume.  The advance/declines were positive.  The overall market was slightly weaker than the Dow.  We have broken out to the upside here but the volume has been lackluster.  As a rule, light volume rallies are not to be trusted.  That said, I still think we'll run things up into the expiration next week.  The trend remains up.  GE was flat on the day and the volume was light.  No trade ideas here for now.  Gold was up 6 bucks on the futures but fell back in the aftermarket.  The US dollar was weaker again today.  The XAU fell almost 2 points.  ABX was up 1/4, while GG and NEM lost 1/3.  Volume was huge again for ABX, light for the others.  I mistakenly thought that my stop loss order for the May ABX calls was filled late yesterday.  Checking back after posting the blog showed that the order wasn't filled.  Once again the premium got to my price and nothing happened.  So I still own the May ABX calls.  I'm sure the stop loss order will be filled in the next day or so, barring a rally in ABX.  More on ABX later.  Mentally I'm feeling OK.  The stock indices continue higher with no overhead resistance.  Not short term overbought yet but another couple of up days will do that.  Money continues to flow into the US stock market.  Gold is trying to hold the $1550 level and the jury is still out on that.  ABX is now blown out to the downside.  The news at this point can't get any worse.  The saying goes, buy bad news.  ABX is not going to go out of business.  The mining operations will get back online once again.  Anything under $25 for this issue is a longer term buy.  I even placed an open order for the June calls last night in case ABX dropped further, which it didn't.  Purchasing ABX now will pay you a dividend of 3% while you wait.  I could be wrong and have been a lot lately but this looks like an opportunity to me.  We'll see how the markets close out the week tomorrow.

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