Wednesday, March 21, 2007
The Dow rallied on the Fed, up 160 points on heavy volume. Advance/declines were 5 to 1 positive. The Fed said nothing special but removed the tightening bias. At least that was the consensus of what came out. We are overbought. I do not think getting short is appropriate. My thoughts now are that the seasonal positive money flow will continue into May. But that's a guess. Gold was up a buck but then rallied in the aftermarket post Fed. The XAU rose 3 points on OK volume. ABX was up a half and my options are now in the black. The dollar fell today and I'm thinking that is what is driving gold at the moment. We are overbought here as well. I was thinking of getting out early in this trade but I am now thinking of holding on for a while. That could change. Mentally I'm feeling better with a good nights sleep. I'm doing what is necessary for clear thoughts while trading and that should help the bottom line. Marketwise I'm going to sit tight here for a while. The extra week in the options dictates the strategy for now. There is a chance that I could get in and out of this gold trade but we'll see.
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