Thursday, March 29, 2012
The Dow managed a gain of 19 points today on average volume. The advance/declines were negative. The overall market was weaker than the Dow. It was a one day reversal to the upside, as the Dow opened lower and closed higher. That would imply higher prices going forward. However the summation index continues lower. We'll end the month tomorrow and go from there. Still overbought on the stock index technicals. GE was off a touch on light volume. Sideways here for the past couple of weeks. Still considering the May calls and would like to purchase them before the earnings report in April. The technicals are mid range here. Gold was off $5 on the futures but came back a bit in the aftermarket. The US dollar ended the day little changed. The XAU was up 1/3 and showed the same positive one day reversal as did the Dow. ABX was flat on the day, while GG and NEM lost 1/8. Volume was average. The gold shares now appear to have bullish hammers on the daily candlestick charts, depending on where we go from here. My open order for the ABX April calls was filled in the morning but I really should have adjusted it to get a better price. They are slightly in the black. I'm not sure how long I'll be holding them but will until at least next week. The technicals on the gold shares remain oversold. Mentally I'm feeling tired, did not sleep well. The next trade is now on. I was lazy this morning, which is unacceptable. The game is hard enough without making it any harder on yourself. The weekly as well as daily charts for the gold shares are oversold, so I think getting the calls here is the right choice. I would still like to go out to May on this trade as well. But as we all know, the markets will go where they want. The Gold/XAU ratio remains in a strong buy. We'll see what happens. The stock indexes have been weaker this week but I'm still looking for higher prices into the April expiration. The trend still remains up for now.
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