Wednesday, April 20, 2011
The stock indices exploded to the upside, with the Dow gaining 186 points on good volume. Advance/declines were over 4 to 1 positive. We are on our way to new recovery highs. Earnings will be the catalyst. It appears that the market got rid of whatever sellers were left on Monday. The summation index should start to turn around here. Look for calls on pullbacks. GE was up 13 cents ahead of tomorrows earnings. Volume was average. I'd expect GE to take off to the upside on its earnings. We'll see. Gold gained $4 today and a bit more in the aftermarket. The XAU was up 2 1/3. ABX gained 5/8, while GG and NEM tacked on 1/4. Volume was light. Would have liked to have seen a bigger move to the upside in the gold shares today considering the US dollar got crushed. But I suppose money is being spread out into the stock market. The daily candlestick charts actually don't look too good for the gold shares after today. We'll have to see what transpires tomorrow. ABX is on the threshold of breaking the all important $55 level. Mentally I'm feeling OK. The stock indices have taken their cue so far this week from the US dollar. When the dollar rose on Monday, stocks tanked. Now that the dollar has reversed to the downside, the stock indices have taken off to the upside. The markets obviously know something that I don't. It's a holiday shortened week so tomorrow will be the end of the trading for the US markets. There is also an extra week on the May option cycle. Apple reported after the bell and beat estimates handily. It should mean another upside day tomorrow.
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