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Monday, April 29, 2013

Starting the week to the upside as the Dow gained 106 points on light volume.  The advance/declines were almost 3 to 1 positive.  The summation index continues higher.  Short term overbought here.  That condition could persist.  I'm still a believer of a top being put in place for the stock indices but as always I could be wrong.  However a light volume rally was what I was looking for.  I purchased some OEX puts today.  Unless we have some kind of high volume breakout in the next day or so, I'll be holding the puts until Friday.  The options are still break even at this point.  GE was little changed on average volume.  No trades there for now.  Gold futures rose $13 today with the US dollar a bit weaker.  The XAU managed a 1 1/2 point gain.  ABX and NEM were up fractionally, while GG was flat on the day.  Volume remains heavy for ABX, light on the other two.  NEM announces earnings today after the bell.  We'll have to wait and see the reaction on that.  My October ABX calls are still in the black.  Mentally I'm feeling OK.  A nice start to the week for the stock indexes to the upside.  There is a lot of economic data and the Fed to deal with this week.  We've got the end of the month tomorrow as well.  So anything could happen.  I've taken my position with the OEX puts.  Gold has had a pretty solid move up from the crash low of 2 weeks ago.  It should be due for a rest.  The gold shares continue to under perform the precious metal itself but at least they have stopped going straight down.  We'll keep an eye on the overseas markets and take it from there.  

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