Tuesday, January 29, 2013
Higher and higher we go as the Dow gained 72 points on good volume. The advance/declines were positive. What more can I say? The market doesn't go down anymore. But we all know better than that. The summation index continues higher. GDP out tomorrow and the Fed statement. That should get things moving perhaps. It has been a great momentum run and there are no signs of it stopping at this point. But it will eventually. GE was flat on the day and the volume was light. My February GE calls remain in the black. I would still like to wait until GE hits $23 to cash out on this trade. But nobody cab predict the future. GE remains overbought. Gold actually went up today. The futures rose 7 bucks on a weaker US dollar. The XAU was higher by 2 1/2. ABX, GG and NEM all had fractional gains on good volume. Could this finally be the bottom for the gold shares? I certainly don't know but it could be the snap back attempt after the recent drop. My February ABX calls are still solidly in the red. This is a cut the loss trade now unless we see some big turnaround this week. Doubtful. Mentally I'm feeling OK. The stock indices remain very overbought yet continue to move up. You cannot fight price. I have no idea how long this can last but it has certainly lasted longer than I expected. Perhaps tomorrows data or the Friday jobs report will be the catalyst for a breather. Gold is once again trying to hold on at its 200 day moving average at $1660. We'll see. A weak GDP plus an accommodating Fed should be positives for gold tomorrow if that is indeed the case. We'll watch what happens overseas tonight and go from there.
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