Thursday, April 16, 2009
A new recovery high today as the Dow gained 95 points on average volume. Advance/declines were about 4 to 1 positive. Summation index still pointing higher. Expiration tomorrow and I had no OEX trades in this option cycle. We continue higher but there is a lot of overhead resistance coming up at around 420 on the OEX. We'll see what happens. Gold lost over $13 today and the XAU fell over 6 points. ABX was off 1/2, while GG and NEM both lost over $2. Volume increased on the downside and that isn't a bullish sign. We are oversold here but the weekly charts don't look good for the upside. I still have in an order for GG calls though. I may cancel it but I do think when nobody wants something it is time to take a closer look. I think this trade has a chance to work so I'm sticking with it for now. If gold continues to break down here that would change things. Mentally I'm doing OK, slept well enough. The rally continues and you have to wonder how far it will go. We've been overbought on the OEX for a while now as well. We'll close out the week tomorrow and take a look at things over the weekend. Perhaps there will be follow through to the downside on gold tomorrow and my order will be filled for the GG calls. On to expiration.
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