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Friday, May 10, 2013

It was a quiet session for most of the day but we came alive in the final half hour to finish the day with a gain of 35 points on the Dow.  The advance/declines were positive and the volume was light.  Still overbought and still moving higher.  I'm still expecting higher prices next week into the May option expiration.  It is a momentum move up for now in the stock indices.  You cannot fight that.  As long as the money continues to flow into equities, the upside is the only way to go.  GE was up 1/8 on light volume.  GE is still deciding what to do here at its 50 day moving average.  Gold took a hit today as the US dollar had another very strong day.  The gold futures fell over $30.  This is probably the move down to retest the recent crash lows.  I think the lows will hold.  The XAU was only down 1/3.  This is the kind of price action that I'd like to see from the gold shares.  When the relative strength vs. gold is higher for the gold shares, that is bullish going forward.  ABX, GG and NEM all had slight fractional losses on average volume.  Buyers came into the gold shares after they sold off early in the day.  My October ABX calls are still in the black.  Mentally I'm feeling OK.  Stocks moving higher as the song remains the same.  No overhead resistance.  Momentum runs never end pretty but they can go on for longer than expected.  No end in sight right now.  Gold started to break down again today and we'll see if there is follow through next week.  The stronger dollar was most likely the catalyst.  One week to go in the May option cycle and I doubt I'll have any trades next week.  Plenty of charts to check out over the weekend.  For now it's Friday afternoon and time for a break. 

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