Friday, February 15, 2013
A mixed bag once again as the Dow gained 8 points on expiration good volume. The advance/declines were slightly negative. The overall market was weaker than the Dow today. Every time the stock indices sell off a bit, buyers step in. This has been the case for quite a while. Until that aspect of the game changes, higher prices are in the near future. You cannot fight that. GE was off 1/8 on average volume. I think GE is due for a rest here. I could be wrong though and might change my mind over the weekend. The daily and weekly charts remain overbought. Gold fell again today, the futures were off around $25. The US dollar was slightly higher. The XAU got pounded again and lost almost 5 points. ABX down 3/4, GG shed 7/8 and NEM lost 1 1/4. Volume was heavy in the gold shares. Money continues to flow out of gold and into something else. I'm looking for gold to head for support at the $1550 level. Mentally I'm feeling OK. The stock indexes have been in a broad advance for weeks. At some point there will be a decline but even if that occurs, I believe it will be a shallow one. Money needs a place to go and it looks like for now the destination is the stock market. Calls are still the way to go. Gold has broken support and puts are in order there. Maybe we'll see a rally once we get down to $1550 but there's also a chance that the bull market there is over. My trading this week was weak. My tactics haven't paid off as they should. I have no trades in mind for the coming week but will have a long weekend to decide what is next. The profit this week could have been so much more and the loss a lot less. But the markets don't care and the markets move on. It is good to have a short memory in this game. I'll check the charts over the next few days and take it from there. For now it's Friday afternoon and time for a break.
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