Friday, January 26, 2007
The Dow lost 15 points on light volume. Advance/declines were positive. The market had sold off more for most of the day. We could be on a holding pattern until the Fed on Wednesday. Gold lost around 4 bucks and the XAU was basically unchanged. ABX lost about 30 cents on light volume. The calls are still showing a small profit. The dollar was higher today but not as much as you would expect given the strong data that came out. We are right at the all important level of 85 and that I feel is the key to gold at the moment. The consensus here is for continued higher rates and that would support the dollar. There is a lot of data coming out next week and the Fed, so it will be a make or break time for this trade. I'm not feeling good about it at the moment but the volume did come in on the upside this week. Hopefully we'll get another pop to the upside and perhaps I'll exit. Mentally I'm doing what I can to stay focused and do the work required. I'll check the charts over the weekend and take it from there.
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