Friday, March 16, 2012
Not much action for expiration Friday as the Dow fell 20 points on heavy volume. The advance/declines were negative. Pretty overbought on the short term here and I would expect weakness at some point early in the new week. Perhaps that will bring an entry point for some calls. The trend for the stock indices remains up. A lot of housing data out next week but that's about it. GE was up a touch today and the volume remains strong. I'm now considering the May calls here if we get a pullback. I think GE has more room to the upside and it has yet to take out its recovery high at about $21. The May 20 calls could be the next trade. Gold didn't do much today, off about $3 on the futures. This despite another down day for the US dollar. The interest in owning gold has waned. The XAU was off 1/3. The gold shares were mixed again. ABX up 1/8, GG off 1/3 and NEM rose 1/8. Volume was extremely heavy here. I'm guessing that is was option expiration related. This really looks to me like a place to try the gold shares again but the recent losses that I've taken here are making me hesitate. Not to mention that the dollar has taken quite a hit in the past 2 sessions and gold hasn't really done anything. I'll consider things over the weekend. Mentally I'm feeling a bit tired, did not sleep well. The stock indexes continue to rally. Nothing seems to be in the way of that. Any dips are being bought. Until that changes, calls are the only way to go. Option premiums will be priced a bit higher for April due to the extra week involved. I'll be going over all the charts over the weekend trying to find the next opportunity. For now it's Friday afternoon and time for a rest.
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