This blog will describe Jimmybees latest Market thoughts. It also will include thoughts on Jimmybees ongoing trading.
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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