Tuesday, April 20, 2010
The Dow gained 25 points today on average volume. Advance/declines were 4 to 1 positive. Today the overall market was much stronger than the Dow. I'm not exactly sure where we're headed from here. There was no downside follow through so the trend remains up for now. Summation index heading lower though. So we have conflicting data at the moment. No OEX trades for now. Gold was up $3 but was higher early. The XAU dropped 1/2 after being higher as well. ABX and GG were flat and NEM lost 3/4. All were higher early too. Volume was very light. My ABX calls are in the red. This trade is looking very shaky. The daily chart now looks like it's headed lower. I'll give it a bit more time. The dollar was up fractionally today but is moving sideways. Mentally I'm a bit tired, did not sleep good. So where do we go from here? ABX earnings are out in a week. Can I hold on that long? Is there any reason to own gold here? We could just hang around until next week with the gold share earnings due then. Time decay will affect the option premiums. On the plus side, there is an extra week in the May options cycle. But unless we see some upside in ABX, this trade will be a loser.
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