Tuesday, February 05, 2013
Back to the upside today as the Dow gained 99 points on average volume. The advance/declines were about 3 to 1 positive. I'm guessing this is going to be a sideways range before we once again move higher but that's just a guess as usual. No technical reason for yesterdays decline or todays advance. Momentum has stalled to the upside here for now. New all time highs were set recently in some stock indices, so I'm assuming that the Dow will eventually follow here. We're only a couple of hundred points away. Declines should continue to be bought if my hypothesis is correct. GE was up 1/4 on light volume. The volume here was lacking and that is a near term concern. Perhaps we will move sideways here before moving higher as well. My February GE calls continue to show a profit. Gold fell a bit today. The futures were off 3 bucks. The US dollar didn't do much today. The XAU was off a touch. ABX, GG and NEM moved fractionally one way or the other on light volume. Still no love for the gold shares. My February ABX calls are still solidly in the red and most likely will be the first losing trade of the year. Mentally I'm feeling OK. A volatile start to the week for the stock indexes. Not a lot of economic data out this week. There is a meeting in Europe later this week that could influence prices. The ECB meeting may also affect the price of gold depending on what comes out of it. I suppose I will wait for that before I sell the ABX calls at a loss. The earnings for ABX are due out next Thursday but I don't even think a good number there will save this trade. We'll see what tomorrow brings.
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