Monday, April 27, 2009
A meandering Monday as the Dow lost 51 points on lighter volume. Advance/declines were 2 to 1 negative. We opened lower, came back and wandered off again. Swine flu is grabbing the headlines. A lot of data out this week including a Fed meeting so I think swine flu will be in the background rather soon. But who knows? No clear signal for the OEX here so it's a wait and see mode for now. Gold lost $6 and the XAU dropped 2 points. ABX and GG were off 2/3 to 3/4, while NEM managed a gain of 1/3. Volume was light as there wasn't a lot of interest here even with the pandemic scare. My GG calls are back where I bought them. I'll be holding on for now. Gold companies earnings are out the next 3 days, including ABX and NEM. So I would expect some movement but certainly don't know which way it will be. So it should be an interesting week. Mentally I'm doing OK. The dollar was much stronger today and that would be a negative for gold going forward. We get 1st quarter GDP this week and that should move the dollar. Not to mention the Fed announcement on Wednesday. Housing data tomorrow. So there will be plenty to digest as the week moves forward. I'm holding the GG calls until the stochastic gets overbought and it isn't there yet. The only problem would be if it rolls over and never gets there. Anythings possible.
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