Wednesday, March 30, 2011
Still moving higher as the Dow gained 71 points on light volume. Light volume seems to be the new normal here for the indices. Advance/declines were almost 3 to 1 positive. Summation index moving higher. Very overbought and staying there. End of the month tomorrow, with the employment report on Friday. The market is headed upwards until further notice. GE gained 1/4 on better than lately volume. I might try the GE calls for April if we get some type of weakness near term. Most likely that is just wishful thinking. However if the GE April 20 calls get cheap I'll probably take a shot there. Not set in stone. Gold was up $7 today and the XAU rose 3 2/3. ABX up 7/8, GG up 7/8 and NEM gained 2/3. Volume is still light here. I think the direction of the US dollar near term will determine the direction of gold. We are right at the daily downtrend line for the dollar and have stalled. So we'll see what happens. The employment report could provide direction here. Mentally I'm feeling OK. A little over 2 weeks left in the April option cycle. Not sure I'll be able to put a trade on but we'll see.
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