Monday, March 28, 2011
Opened higher and closed lower for a one day reversal as the Dow lost 22 points on very light volume. Advance/declines were negative. Not a lot to report with regards to todays market movement. It was a tight range throughout the day. I do expect weakness here early in the week to relieve the overbought condition. After that, who knows? End of the month on Thursday and the employment report the following day. GE was flat on little volume as well. Nothing new to report here. Gold lost $6 today and the XAU dropped 3 1/8. ABX, GG and NEM all had fractional losses on very light volume. I'm still looking to do a trade here. I'd prefer to go out to the May option cycle but that is not set in stone. I think that the gold shares will follow the indices lower early this week and that could be the opportunity to purchase some calls. That's a guess as usual. Mentally I'm feeling OK. The dollar is at a key point on the daily candlestick charts, right up against a downtrend line that has been in effect since the beginning of the year. If the line holds it would be bullish for gold. If not, just the opposite. It is something to keep an eye on near term. So I'll be looking for weakness the next couple of days in the indices and go from there.
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