Wednesday, April 21, 2010
The Dow ended the day up 7 points on average volume. Advance/declines were positive. We opened higher but then dropped about 50 points in the afternoon. A late day comeback pushed us into positive territory. Tough to say what's going to happen next but I would not be surprised by some weakness for the end of this week. It's possible that we are finally building a top here. I could be wrong and often am. Gold was up $9 but the gold shares lagged again. The XAU was up just 1/2. ABX, GG and NEM all had fractional gains on light volume. My ABX calls are still in the red. The gold shares should be rallying on positive movement in the price of gold. The fact that they're not is worrisome. The dollar continues higher as well, which normally isn't supportive of gold. On the plus side the gold shares at least showed good relative strength today compared to the rest of the market. It looks like I'll be holding the ABX calls until the earnings next week barring a catastrophe. Mentally I'm feeling OK, could have slept better. The market seems to have shrugged off the Goldman Sachs news and hasn't fallen apart as yet. The summation index continues sideways for now. But all that could change on a dime. But it hasn't and that is important as well. We'll see what happens tomorrow.
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