Tuesday, May 01, 2012
We finished with a gain of 65 points on the Dow but finished well off of the highs for the day. The advance/declines were almost 2 to1 positive and the volume was light. The economic data reported today was stronger than expected and that was the catalyst for todays rally. Beginning of the month money flows was also probably a contributing factor. Where we go from here is the next question which should be resolved on Friday. Probably a waiting game until then. GE was up 1/4 on light volume. It looks like we've been stuck in a range between 19 and 20 for the past 2 months on the daily chart. We will have to see which way it breaks but my guess would be to the upside. Gold lost a couple bucks on the futures as the US dollar was a bit higher today. The XAU was up 1/2. ABX was flat ahead of the earnings release, while GG and NEM rose around 1/3. Volume was light. My ABX May call trade will all depend on the earnings tomorrow. That is not really the position that I would like to be in. I'll simply hope for the best and see what happens. That is no way to trade. Mentally I'm feeling tired, did not sleep well. The short term technicals for the stock indices remain overbought. Todays fade away from the highs isn't exactly bullish. The coming employment report looms large so I doubt we'll see any major movement before then. I could be wrong. I'm waiting for tomorrow mornings ABX earnings announcement and I'll take it from there.
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