Wednesday, March 23, 2011
We gained back what we lost yesterday as the Dow rose 67 points on light volume. Advance/declines were positive. We're overbought now and right at resistance on the S&P 500. Some type of pause or pull back is in order. Unless we just take off to the upside here but I do not anticipate that happening. I've been wrong before though. So we will have to wait and see how the rest of this week plays out. GE was flat on the day after being weak early. Volume was light. How GE acts here could be a key as well. No trades in mind for GE at the moment. Gold was up another $10 today and is right back to all time highs. The XAU soared 7 3/4 points. ABX up 1 3/4, GG up 1 1/2 and NEM up 1 2/3. Volume picked up on the ascent. It looks like I have missed yet another move in the gold shares. I did place an open order for some ABX April calls in case we get a pull back near term. The dollar was stronger today yet gold rallied anyway. Seasonally March is a weak month for gold but that hasn't panned out this year. And so it goes. Mentally I'm a bit tired. We had a signal on the gold/XAU ratio a few days ago and I did not place a trade. That was a mistake. We were also oversold on the gold shares at the same time. It was a great set up and I didn't do anything. Not sure why but perhaps I was still occupied with the losing GE trade. There are no excuses. I will simply have to do better in the future. There is a reason that this is the toughest game in the world. However the battle always lies within oneself. We'll see what tomorrow brings.
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