Wednesday, April 06, 2011
Grinding higher as the Dow gained 32 points on average volume. Advance/declines were positive. Summation index continues higher. I still expect upside into the expiration next week. Nothing has changed to derail that. The market is overbought, staying there and that is the tune for now. GE was up 1/4 on OK volume. I canceled the open order for the April GE calls. 7 days to go and the price I wanted for the options isn't going to happen. I also don't think that GE has the volatility at the moment for this trade now. I do still believe that GE will see a higher price near term. Gold gained another $6 today and a few more in the aftermarket. The XAU fell 1/3. ABX, GG and NEM were mixed with fractional moves. Volume was good here. I'm leaving in the open order for the April ABX calls. There is volatility in the gold shares and plenty of interest at the moment. I'm not sure that I will hold this over the weekend though. We'll see what transpires between now and then. The dollar was weaker today and could be starting another leg down. Time will tell on that. Mentally I'm a bit tired, did not sleep well. We are right at resistance for the S&P 500. I do think that we will break through and set new recovery highs soon. Before expiration is my guess. There may be an OEX trade to take advantage of that, if we see some weakness first. That would be the ideal scenario.
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