Wednesday, January 23, 2013
It's the rally that never ends as the Dow gained 67 points on average volume. The advance/declines were slightly negative though, so perhaps we'll finally see some decline tomorrow. Or not. The summation index continues higher. Very oversold both short and medium term. This condition cannot last indefinitely. If we do see any selling though, I believe that buyers will step up rather quickly. It is that kind of market at the moment. GE was off a few cents after being off as much as 1/4. My order for the February GE calls was filled. It is about at break even. My thinking is that the price action here in GE is the snap back to the breakout. I may be early though. Still three weeks left in the February option cycle. Gold was off $6 today on the futures as the US dollar was slightly higher. The XAU however dropped 4 1/3. The gold shares continue to under perform here. I may have to reconsider my order for the February ABX calls. ABX off 3/4, GG down a buck and NEM shed 7/8. Volume was average. These issues are trying to break through their 50 day moving averages to the upside but are failing once again. Gold itself is being turned back by the 50 day as well. I still have in the open order for the February ABX calls but I may have to adjust or cancel it tonight. Mentally I'm feeling OK. A rally today but the breadth did not confirm. So perhaps we'll get some weakness tomorrow. GE has pulled back a bit on lighter volume. I still think getting the calls here would be a good idea. We'll see. The gold shares had a very weak showing today. If there is follow through tomorrow I may have to cancel the ABX call order. Or at the very least adjust the price that I'm willing to pay for the calls. It is something to ponder this evening. We'll see what happens tomorrow.
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