Tuesday, March 23, 2010
Continuing higher as the Dow rose 103 points on average volume. Advance/declines were over 2 to 1 positive. It is like a broken record. Overbought and staying there. How high will we go? I don't know but you cannot deny the price action. The Dow was stronger than the overall market. We'll see how long that lasts. The trend is up. Don't fight it. Gold was up around $5 today. The XAU gained 1/2. The gold shares were mixed again. ABX off 2/3, GG up 1/3 and NEM was flat. Volume was nothing special. The dollar was up a bit. Still just moving sideways here for the gold issues. We are a bit oversold on the gold shares but I'm not looking at the calls just yet. I could be wrong. I think that I might go out to the May option cycle for the next gold share option trade. It isn't set in stone. Mentally I'm doing OK, slept well. The market continues higher. My thinking now is that it is simply a liquidity move since money is so cheap due to 0% interest rates. Money is finding a home in stocks. But that's a guess, as usual. Technically we might be setting up negative divergences in the indices with respect to RSI and the McClellan oscillator going forward. We'll have to wait and see if that comes to fruition.
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