Friday, February 04, 2011
The employment numbers came out and the market trudges on. The Dow gained 30 points today on lighter volume. Advance/declines were negative. The indices tried to sell off but the uptrend remains intact. Don't fight the trend. We are short term overbought again though. GE lost 20 cents on light volume. Nothing to do but wait there. I'm still interested in the March calls there. Gold lost $4 today and the XAU was down 1 1/2. ABX, GG and NEM all had fractional losses on lighter volume. Not exactly sure which way to go here now. Getting overbought short term so the ABX calls will have to wait. The dollar showed a bit more strength today. We are at a key trend line for the US dollar longer term. We have a 3 year line of support that comes in at around the 77 level. If it holds the dollar will move higher. If not then a weaker dollar could and should be supportive of gold prices. The jury is still out on this one. But it is something to keep an eye on. Mentally I'm a bit tired, did not sleep enough. Plenty to ponder over the weekend with 2 weeks to go in the February option cycle. I'll be checking the charts and trying to come up with some type of game plan. For now it's Friday afternoon and time for a break.
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