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Wednesday, May 01, 2013

The Dow headed lower today as it fell 138 points on average volume.  The advance/declines were almost 3 to 1 negative.  We were short term overbought, so a decline here would be in order.  How much of a decline is the question.  The Fed came and went with no real market impact.  There was nothing new in the Fed announcement and rates remain as low as they can go.  The Dow transports and the RUT were especially weak which tells me that the decline could have legs.  My May OEX puts are in the black.  I'll hold them until the employment report at least.  We'll see how the weekly charts look on Friday.  GE was off 1/8 on average volume.  No trading ideas there for now.  Gold headed lower today as well, off $25 on the futures.  It made up a little ground in the aftermarket.  The US dollar was a bit lower today.  The XAU fell 2 1/8.  ABX down 1/2, GG off 3/4 and NEM was up an 1/8 or so.  Volume remains better than average for the gold shares.  My October ABX calls are still showing a profit for now.  Mentally I'm feeling a bit tired.  Lower today on the stock indexes but we all know that the market can turn on a dime.  I would expect Thursdays trading to be a wait and see game.  The next big market mover should be Fridays employment report.  Anything goes there.  I have no idea what the numbers will be but the market reaction will be what's important.  Gold itself looks like it has rolled over here.  We'll see if the recent crash lows hold.  I think that they will given the extended snap back rally we've seen there.  But anything can happen.  We'll see if the overseas markets follow the Dow lower overnight and go from there. 

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