Thursday, February 23, 2012
A one day reversal to the upside as the Dow opened lower and closed higher. We gained 46 points on light volume. The advance/declines were over 2 to 1 positive. The over the counter stocks had a good day and that's usually bullish going forward. No real news to report and the economic data was relatively benign. We'll see if we can build on todays gains tomorrow. GE closed down a touch but was well off of the days lows. I still might try the March calls here with 3 weeks left in the option cycle. I will consider this trade over the weekend. Gold continued its run higher by gaining $15 on the futures but lost ground in the aftermarket. The US dollar had a decent drop today. The XAU was up a point. ABX gained 1/8, GG up 1/4 and NEM rose a buck. Volume was average. My ABX calls are still in the black but they finished well off of the days high. ABX and GG are running into short term resistance and I would expect a pause in the recent rally here. I expect that we will break through the resistance next week but that's a guess as usual. Anything can happen. Mentally I'm feeling OK, slept well enough. I'm looking for higher prices in the stock indices and expect the uptrend to continue into the March option expiration. I'm also thinking that gold will hit $1800 next week and we are already almost there. What happens when we get to $1800 will be the key. A break through that level will probably mean a run at the all time highs. However there is a possible negative RSI divergence on the daily gold chart. So the jury is still out there. I'll be keeping an eye on the ABX calls that I have but I anticipate holding them into next week at the least. We'll get through tomorrows trading session and reassess things from there.
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