Friday, April 27, 2012
We finished off the highs of the day but the Dow still managed a gain of 23 points on light volume. The advance/declines were 2 to 1 positive. The GDP number was lower than expected but the stock indices shrugged it off. The trend is now up. The summation index is moving higher. Declines can now be purchased, in my opinion. End of the month on Monday. GE was up 1/8 on light volume. Getting to short term overbought here. Perhaps GE will take a rest now ahead of next Fridays employment report. The overall market could follow this pattern as well. Gold was up $4 on the futures as the US dollar sold off on the weak GDP report. The XAU gained 2 1/4. ABX up 3/4, GG rose 3/8 and NEM gained 1/8. Volume was light with the exception of NEM. The earnings for NEM were in line with expectations and the stock finished well off of the highs. My May ABX calls are mostly still in the red. I might be able to cut the loss a bit if the earnings surprise to the upside next week. At any rate it looks like a loser overall. Mentally I'm feeling OK. The stock indexes are getting short term overbought here, so a pause would not be unexpected. The key to next week will be Fridays employment numbers but if we are in rally mode they will be interpreted as positive regardless. We'll see. Gold had a pretty good week for a change and we will have to see if there is any follow through next week. The ABX earnings on Wednesday will tell a lot about whether the May call trade has a chance. At this point it's in the cut the loss mode. Not much else from here on a Friday afternoon. I'll check the charts over the weekend and go from there.
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