Tuesday, April 05, 2011
Another lackluster session for the stock indices as the Dow lost 6 points on light volume. Advance/declines were positive. We are moving sideways for now but I believe that we will be heading back to the upside by the end of the week. Not a lot of economic data out this week. I am looking to purchase some calls before expiration. GE lost 20 cents on light volume. I have an open order in for some April 20 calls. It might get filled if GE sees some more weakness near term. We broke the daily downtrend line here a few days ago. The next technical expectation is a return towards that line before we head higher once again. We'll see if it pans out. Gold broke out to new highs today, up $20 and $5 more in the aftermarket. The XAU soared 9 1/3. ABX up 2 7/8, GG up 3 and NEM up 2 1/3. Volume increased on the breakout. This I think is a valid break to the upside and you can hop aboard for the ride. I also have an open order in for some April ABX calls. I moved to a higher strike price than I was looking at. This order may not be filled as it is entirely possible that we simply move straight up from here. However I do feel that this move is worth chasing. The gold shares moved up around 5% in just one day. That must be respected. We'll see what happens. The dollar fell just a touch today. Mentally I'm feeling OK. So gold is on the move and I am not taking advantage of it once again. However the technicals showed nothing to anticipate this breakout so I can't feel too bad about missing it. There is always a chance that I'll still be able to salvage something if the ABX order gets filled. Meanwhile the stock indices are taking a breather here from going straight up. I do feel that higher prices are in the near future, before the April expiration next week. I'll try to take advantage of that with GE. We'll see what happens.
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