Monday, February 07, 2011
It was a positive Monday as the Dow gained 69 points on average volume. Advance/declines were 2 to 1 positive. Still moving higher but we do have a negative divergence on the RSI indicator. That could change if we have a strong up day tomorrow. However we are short term overbought and due for some pull back. We'll see. GE was up 1/3 on light volume. I'd still like the March calls if the opportunity presents itself. Gold was flat today and the XAU lost 1 1/4. ABX, GG and NEM had fractional moves one way or the other on light volume. The dollar was flat. It's getting late to try the February gold share calls but I still might give them a shot. The risk increases with each passing day though. I may have to go out to the March series. Mentally I'm a bit tired. I'd like to see the indices head lower here for a few days to give me a chance at the February OEX calls for next week. This would be a short term trade with a life of a few days. Not exactly what I normally do but if there's a decent signal I'm willing to give it a try. I would like to attempt some type of trade before the February options are gone. So we'll see what happens.
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