Tuesday, January 25, 2011
The Dow tried to sell off today but came back once again. We were off 80 points but came back to only have a loss of 3. Advance/declines were slightly positive and the volume was good. The activity today is something that we have seen for weeks on end. The market just doesn't want to go down. You cannot fight that. We've got the Fed tomorrow so we'll see what kind of reaction that brings. GE lost 6 cents on very heavy volume. As I said yesterday, I'd like to try the calls there again if we get some downside. I'm looking at the March options. Gold lost $12 on the futures today, while the XAU dropped 1 3/4. ABX, GG and NEM were mixed with fractional gains and losses. Volume was pretty good. These issues were weaker during the day as well but came back with the overall market. The dollar continued weaker today but again, it didn't help the price of gold. I did put in an order for some February ABX calls but I'm not sure this is exactly the right time. However we are oversold there and a bounce is possible at any time in my opinion. As we all know, my opinion means nothing. The markets and individual issues will go where they please. Mentally I'm feeling OK, slept well. It appears the indices will continue to grind higher. That has been the case and there is no change for now. We'll see if there are any surprises for the Fed tomorrow. I don't expect any changes.
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