Thursday, March 24, 2011
Continuing higher as the Dow gained 84 points on average volume. Advance/declines were over 2 to 1 positive. The summation index should be turning around here. We're overbought and staying there as it looks like the event driven decline has ended. It has been a rapid turnaround and I would expect some weakness but there hasn't been any. You can't argue with price. Any pullbacks can be bought, in my opinion. GE gained 1/4 on light volume. GE hasn't regained as much ground as the overall market here. I might try the calls here again but not at this time. Gold was off a few bucks after setting all time highs early in the day. The XAU declined 1 2/3. ABX off 3/8, GG off 7/8 and NEM down 1/3. Volume picked up a bit. The daily charts look like one day reversals to the downside for the gold shares. I'm keeping in the open order for the ABX April calls. I still believe that this trade will work in the next 3 weeks. I could be wrong. The dollar was a bit weaker today. Mentally I'm feeling OK. On day left in the week for trading. The stock indices are overbought but show no signs of slowing down. I have no OEX trades in mind here unless we get to an oversold position. So we'll see. I'm still a fan of the gold shares and will place the ABX trade if possible.
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