Wednesday, April 29, 2009
Back to the upside as the Dow gained 168 points on average volume. Advance/declines were 4 to 1 positive. Summation index is still to the upside. GDP worse than expected and the market shrugs it off. Fed announcement, nothing new. You cannot argue with price and volume. So perhaps we will run up into the May expiration. But you know, tomorrows another story. Gold gained $7 today but the XAU could only manage 3 1/4 points. ABX, GG and NEM all up around 1/2. Volume light as usual. ABX missed on its earnings but it was a non event. The gold shares are overbought now and they haven't moved enough to make the GG calls profitable. Still in the red there and this sideways movement is sucking out the time premium. I'm going to have to think about where to take the loss at this point. NEM earnings tomorrow. Will they lift the gold shares? There just isn't any volume here. I certainly don't want to wait for the GG earnings next week if we don't see any upside by the end of this week. It is never easy but this trade looks dead. Mentally I'm a bit tired. Did not sleep as long as I would have preferred. So we got through with the Fed and what is next? Waiting for the employment report in over a week? I don't see any catalysts from here one way or the other. On we go.
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