Tuesday, April 06, 2010
The Dow lost 3 points today on average volume. Advance/declines were positive. I've got to say that even average volume is pretty light these days. The overall market was stronger than the Dow. That portends higher prices ahead usually. We continue to grind our way higher. Not much data out this week. I don't want to get too complacent but it is April. Sometimes not much happens during this time of year. Gold was up a couple bucks even with a stronger dollar. The XAU lost 1/2. ABX, GG and NEM all had fractional losses on light volume. I'm going to try the puts here on the gold shares. I put in an open order for some ABX puts last night and I am leaving that order in. This would be a short term trade in the April option cycle. Longer term , I still like the May gold share calls. For now we are overbought on the gold shares and it looks like the dollar could be turning around from its recent weakness. We'll see. Not a lot of money in this trade and it needs to be filled tomorrow in my opinion at the moment. My thinking is that the overall market will be higher taking the gold shares with it. Then the ideal scenario would be a pull back into the end of the week. Mentally I'm a bit tired, did not sleep well. So I'm going to try this trade for tomorrow and go from there. It's risky but all trades are. I think it has a chance for success. We'll know more with tomorrows market action.
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