Friday, February 17, 2012
The Dow closed out the week with a gain of 45 points on light volume. The advance/declines were positive. The overall market was weaker than the Dow though. I'm not exactly sure where we go from here but the trend is still up until proven otherwise. It's a long weekend with a Monday holiday. We'll have to see what kind of news comes out of Europe. GE was up 1/4 on good volume. We're back up to the top of the trend channel. Perhaps the action in GE today is a precursor for the stock indices next week. That's a guess, as usual. Gold fell a couple bucks on the futures as the US dollar finished the day little changed. The XAU fell almost 3 points. ABX down 1 1/8, GG off 1/3 and NEM dropped a buck. Volume was average. I am thinking about trying the gold share calls again, since we are just about at the Gold/XAU buy signal once again. We are also more oversold than overbought. I'll consider this trade over the weekend. Mentally I'm doing OK. I'm still getting past yesterdays debacle with the horrible ABX trade. But you've got to move on. We're on to the March option cycle. The stock indexes continue to move higher despite the ongoing backdrop of headline risk. There is also a possible negative divergence with the daily RSI. So we'll see what happens next week. For now it's Friday afternoon before a long weekend and time for a break.
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