Thursday, April 12, 2012
A huge day for the stock market as the Dow gained 181 points on light volume. The advance/declines were about 5 to 1 positive. The sellers have disappeared for now. This bounce seems like it is the beginning of a move to new highs with todays action. Time will tell. No reason that I can see for such a huge move except for moving off of an extreme oversold short term condition. We'll see how we end the week tomorrow. GE was up almost 1/3 on light volume. I dumped the GE calls that I bought earlier this week for a slight 10% gain. The volume on the bounce here has been very light. This trade might be worth holding on to but I'm gone. The entry was early and this wasn't the most well planned idea. Gold gained $20 on the futures as the US dollar fell today. The XAU soared 6 points. ABX up 1 1/8, GG added 1 1/3 and NEM higher by 1 1/2. My order for the ABX May calls wasn't filled. I'm leaving it in overnight. This is a trade that I would really like to be in and I hope that I'm not too late. Gold is moving higher for no apparent reason and now the gold shares have taken notice. Mentally I'm feeling tired, did not sleep enough. The stock market has bounced pretty strong here. I did not expect it. The volume has been light though. My mind was taken up with the GE trade and I should have been paying attention to the gold shares. I was but it's better for me to do one trade at a time. There's still time for the gold share trade in my opinion but I should already be there. The small profit in GE is better than a small loss. However you don't trade options for small gains. I'll keep moving on to the next trade. 6 days to go in the April option cycle. We'll see what tomorrow brings.
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