Tuesday, March 27, 2012
Digesting yesterdays gains today as the Dow fell 44 points on light volume. The advance/declines were negative. Not exactly sure where we go from here but I am still looking for higher prices. The stock indexes kind of fell apart in the last hour and that usually means lower prices ahead. End of the month on Friday as well. The summation index is moving sideways. GE was flat on the day with light volume as well. I'm still waiting on the May calls here as the price hasn't reached the level that I'd like to purchase just yet. Patience is required and there is no hurry for now. Gold was off a touch on the futures and fell $5 in the aftermarket. The US dollar was bit higher today and is trying to hold an upside trend line on the daily charts that has been in effect since November. If it holds we'll see a rally in the dollar and that would not be positive for gold. If it doesn't hold than the opposite should occur. The XAU fell 2 1/2. ABX off 2/3, GG lost 1/2 and NEM lower by a buck. When the stock market continued to drop in the final hour, I dumped the ABX calls. The profit was 45%. I needed to have a winning trade and I at least accomplished that but the profit could have been better. I still like this trade and will probably put in an overnight order to buy these again. Or perhaps go out to May, which is the preferred idea. The Gold/XAU ratio remains solidly in the bullish buy zone which leads me to believe the gold shares calls will work again. We'll see. Mentally I'm feeling OK, slept well enough. We'll have to see if there is any follow through downside for the stock indices tomorrow morning. Still overbought on the technicals. I'll be keeping an eye on the gold shares for follow through to the downside as well. Perhaps will try the April calls again this week. Not much else to report for now.
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