Friday, February 11, 2011
There seems to be no stopping this rally as the Dow continued higher today by 44 points. Advance/declines were better than 2 to 1 positive and the volume was average. The situation in Egypt seems to have stabilized and that was todays excuse to move up. We are still very overbought. But even intra-day declines are bought up as money continues to flow into the indices. Enjoy the ride. GE was up a nickel on light volume. I'm still waiting to trade the March calls there. A pullback to the $20 area would set it up for me. Gold lost a couple bucks today and a bit more in the aftermarket. The XAU fell 3/4. ABX, GG and NEM had fractional moves one way or the other on light volume. I canceled the open order for the ABX February calls. No need to have anything open over the weekend. I will have to reconsider this trade over the weekend. The dollar was up again today and it looks like the 77 level has held there. That would not necessarily be bullish for gold. We do have the earnings for ABX on Thursday next week. A position ahead of that announcement would be the only attempt at this point. The technicals are mixed. Mentally I'm feeling OK. 5 days to go in the February option cycle. Any trade would be quick and risky. That is not my strength but that doesn't mean that I won't try something. The indices are so blown out to the upside that the usual technical sell signals just haven't worked. I'll check the charts over the weekend and try to come up with some sort of game plan for next week. But for now it's Friday afternoon and time for a rest.
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