Monday, January 29, 2007
The Dow gained 3 points on average volume. Advance/declines were positive. The S&P 500 was negative but the NASDAQ was positive. It was a mixed day and really we are just waiting for the Fed on Wednesday. Gold lost a couple bucks but the XAU dropped 2 and 1/2 points. ABX lost about a dime which wasn't bad considering. The volume was light. However the chart isn't looking so good now. Oil lost over a buck and that probably contributed to the drop in gold. The dollar was weaker today. So it was a mixed picture in the precious metal as well. My calls are a bit over break even. I'm surprised that they have held up as well as they did. I suppose this week will be make or break for this trade. I have nothing else on the horizon at the moment. We are approaching short term oversold but I do not think I will be playing the bounce. The market isn't acting too good here. That could all change after the Fed but we'll have to just wait and see. Mentally I'm unsure of what to do here. I probably need to be thinking about dumping these calls. But my thought is that we will be getting a move lower in interest rates after the GDP is reported on Wednesday. That should support a rally in gold. But it's just a guess. Right now the volume is telling me to look for higher prices in ABX. I'm going to stick with that.
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