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Thursday, January 22, 2015

And there we have it.  The Dow climbed 259 points on heavy volume.  The advance/declines were over 3 to 1 positive.  The summation index will be turning up after todays action.  The European central bank had its say and the market responded.  This is the rally that I expected to take place in the beginning of the year.  We will see new all time highs soon in my humble opinion.  Not getting the SPY February calls on Tuesday was once again a missed opportunity.  Trust me, it is frustrating but at least my ideas are moving in the right direction.  GE was up another 1/4 and the volume was good.  I get the feeling that the earnings will be well received tomorrow at this rate.  My GE March calls are still in the red though.  Gold was up $7 on the futures despite the US dollar having a huge upside advance.  The rally in the dollar has been non stop since last summer.  That fact that gold continues to rise in the face of a strong dollar is confounding.  Gold and the gold shares are very overbought now as well.  The XAU and GDX had very small fractional losses on the session.  A sell the news event for the gold shares on the ECB announcement.  I'll consider the gold shares if we get a pullback.  Mentally I'm feeling OK despite missing the SPY call trade.  What can you do?  When confidence gets shot during a losing streak, you tend to hesitate on the next trade attempt.  That is why the trading itself is what really matters and not the money.  I'll just keep looking for other trades as we move along in the February option cycle.  Calls will be the way to go on the stock indexes if we see any weakness.  I'm not one to chase strength usually but that should have been done in gold and the gold shares.  Patience is what will be required now.  We'll wait to see what GE has to report tomorrow and finish up the trading week.

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