Thursday, January 27, 2011
We closed flat on todays session as the Dow ended the day with a gain of 4 points on average volume. Advance/declines were positive. We are short term overbought however in a market like this, it doesn't mean anything. We continue to grind higher. The overall market was stronger than the Dow today again. GDP tomorrow. GE was up 1/3 on average volume. Overbought here both short and medium term. I am still looking at the March calls for a possible trade here. I will need to see the overbought condition relieved first though. Gold lost $15 and more in the aftermarket. The XAU dropped 5 1/4. We reversed yesterdays bounce. ABX down 1 3/8, GG lost 3/4 and NEM fell 1 1/2. Volume was good. The US dollar lost some more ground today but once again it did not support the price of gold. Money is leaving both the dollar and gold. Money is leaving the bond market as well. Players are moving towards more risk and that money is finding a home in stocks. That is my best guess at the moment. I still want to try the ABX February calls. I have entered another open order. We'll see. Mentally I'm a bit tired, could have slept longer. I have no clue as to tomorrows GDP but I do think it won't be a weak number. How the market reacts will be the key, as always. There has been nothing in the way of the markets upwards progress. That will probably hold true tomorrow as well.
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