Tuesday, March 13, 2012
The market took off today as we made new yearly highs in the Dow. The most watched index rose 218 points on good volume. The advance/declines were 5 to 1 positive. The summation index should be moving back to the upside after today. The market was already 100 points higher before the Fed. We didn't do much after the Fed announcement but them rallied strongly again in the final hour. We're overbought now but that hasn't meant much in this bull run. The trend remains up as there seems to be plenty of capital to go around. GE gained 1/2 on good volume as we have finally broken through the top of the trading range there. It looks like we are on our way to the old highs at $21. Probably too late to get the calls there but I'll keep an eye on things. Gold fell $5 on the futures but another $25 in the aftermarket when the Fed announcement happened. Nobody wants gold now. The US dollar was higher today. The XAU was off 2/3. ABX down 1/4, GG off 1/2 and NEM fell 7/8. Volume was good. The overall stock indices are rallying and the gold shares are going nowhere. March is historically the worst month for the price of gold. The Gold/XAU ratio buy signal isn't working. I'll be looking at the May gold share calls when I think that gold has completely washed out. Should be towards the end of this month. Mentally I'm doing OK. My mind was so tied up with the gold shares and gold that I've missed this opportunity in the stock indexes. That is a fact. The losing trades weakened whatever confidence I did have. The mental capital is always the most important. I'll be keeping an eye on things but on the sidelines for now. The stock indices are once again moving higher and there is nothing in the way to change that for now.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment