Thursday, March 30, 2006
The Dow lost 65 points today on expanding volume. Advance/declines were negative but not by much. End of the quarter tomorrow. Might see some swings. I think the market wants to go higher here though. I don't see any big decline at the moment. That could change, as always. Gold continued to rise and it broke out to new highs on expanding volume. It was up over $9. ABX was up over 80 cents and the volume was good there as well. We are overbought and up against some channels. I'm going to buy some more calls on a pullback or sideways action. I regret selling earlier this week but you've got to make adjustments and my original prognosis earlier seems to be proving correct. Of course it could all blow up in my face again too. I'll wait, hopefully, for gold to come back to $575 and get long there. I think we are going over $600 before these options expire. The ABX calls I still have a slightly in the black. I might switch to NEM or perhaps some XAU calls for the next trade. We'll see. I do have some targets in mind. And again, I also have to keep in mind that I could be wrong and that this won't work. But the volume has come in and there is a breakout. More tomorrow...
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