Thursday, January 31, 2013
The Dow dropped 50 points today on good volume. The advance/declines were positive though. Simply waiting for tomorrows employment numbers. This is the first time we've had 2 days in a row down since the beginning of the month. Still overbought on the stock indices so we'll need to see some more downside before another run higher or at least some sideways price movement. We will have to see what the numbers are tomorrow and the markets reaction to them. GE was flat on the day after being higher. Volume was average. My February GE calls are still positive but have lost some value. I will probably dump them sooner rather than later. Gold fell back today after yesterdays gains. The precious metal futures lost $20. The US dollar was a bit weaker as well. The XAU was off 1 1/4. ABX, GG and NEM all had fractional losses again on average volume. My February ABX calls are almost worthless. I doubt even the earnings report in a couple weeks can save this trade. It was wrong from the start and I should have simply bailed out of the position the day after I bought it. Mentally I'm feeling OK. How much will tomorrows numbers matter? Probably just a day or so. This is a momentum rally and I would expect after we take a breather, the prices will head back higher. Most likely moving up into the February option expiration. After that, perhaps things will change. Gold remains dead money. Even bullish news doesn't do much except for a one day rally. The gold shares have gotten pummeled. How much lower can they go? We'll get some rest tonight and it's on to the jobs number to wrap up the week.
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