Monday, January 24, 2011
The Dow continued higher with a gain of 108 points on average volume. Advance/declines were over 2 to 1 positive. There is still nothing to derail the uptrend at this time. We do have a Fed meeting this week and the first look at 4th quarter GDP. However until the longer term uptrend line in the S&P 500 is broken to the downside with volume, we will continue higher. It won't last forever though. GE rose another 30 cents on heavy volume. I would like to try the calls here again for March on a pullback. That remains to be seen. Gold was up $3 today but sold off in the aftermarket. The XAU fell 1 1/2. ABX, GG and NEM all lost about 1/2 to 2/3. Volume was nothing special. The US dollar fell again today but it did nothing to support the price of gold. I'll try the February gold share calls at some point in the next 4 weeks unless we completely unravel to the downside. But for now it's a wait and see approach. Mentally I'm feeling tired, not enough sleep. A good start to the week for the bulls and we'll have to see if they can build on it. I don't expect any surprises from the Fed but you never know. The uptrend in the stock indices has been in place for quite a while. It won't last forever.
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