Monday, May 07, 2012
A lower start to the week as the Dow fell 29 points on light volume. The advance/declines were positive and the overall market was stronger than the Dow. The S&P 500 futures sold off big on Sunday night after the election results from overseas. However there was no follow through downside when the markets opened up today. We had every reason to sell off this morning and we didn't. That usually is a sign that the stock market wants to go higher. The daily technicals on the stock indices are now more oversold than overbought. GE was flat on the session with light volume. Still in the trading range here. Gold dropped $6 today as the US dollar was higher. However the dollar was much stronger early in the day and came back well off of the highs. The XAU was off 7/8. ABX and NEM were both flat on the day while GG lost 3/8. Volume was light. I still have some May ABX calls open that are losers. I'll be selling them this week but am waiting for some kind of bounce to perhaps cut the loss. The gold shares are oversold and have been for a couple of months. Gold and the gold shares are dead money. My trading account died a bit with them. Mentally I'm feeling OK. 9 days left in the May option cycle. I don't see myself doing any trades after the ABX call trade debacle. If anything I'd be looking at the OEX calls here. But my confidence is shot, so the sidelines seem like a good place to be for the moment. Not a lot of economic data out this week, so there won't be much to trade off of. We'll see what goes on tonight and take it from there.
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