Tuesday, January 30, 2007
The Dow was up 32 points on average volume. Advance/declines were 2 to 1 positive. The overall market was much higher than the Dow, with the S&P 500 up over 8 points. That's the biggest divergence that I've seen in a while. Lots of economic data and the Fed tomorrow. Gold was up a buck and the XAU gained almost 2 points. The dollar was little changed. My calls are back in the black as ABX rose around 40 cents. The volume wasn't all that great though. I'm still a believer that the GDP will be weaker than expected, the dollar will drop and gold will rise. Hopefully the Fed won't be too hawkish. But anything can and will happen. Oil was up almost $3 today, which is huge. I think that maybe gold was just following that. Tomorrow should be a big day and I will have to think about bailing out of these calls and look to buy them cheaper down the road. That's the ideal scenario, we all know reality is usually much different. I do think the dollar will get weaker here for various reasons. We'll see. Mentally I'm doing what is necessary to try and keep control of my market emotions. I'm doing the after hours work required and I think that I will do a much better job trading from here. Easier said than done as always.
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