Thursday, February 07, 2013
Still in a sideways consolidation as the Dow fell 42 points on average volume. The advance/declines were negative. We sold off early again and tried to come back. That has been the pattern here lately. No real news out of the ECB meeting today. There isn't much to trade on. I'm still going to be a believer in higher prices into the end of next week. The positive expiration week bias should be in effect. But anything can and will happen in this game. GE was up a touch on average volume. The up trend line from the beginning of the year remains intact. I'm still waiting for the $23 level for now. Gold bounced around today and the futures finished the session off $7. The US dollar had a strong day and has had a very good week. This doesn't bode well for gold. The XAU was up 1/4. ABX and GG were flat on the trading day, while NEM rose 1/4. Volume was light to average. My February ABX calls are almost worthless as this trade was a loser from the beginning. I obviously should have cut the loss earlier. But mistakes are part of trading. The ability to move on is a must. Mentally I'm feeling OK. I thought the stock indices were on the verge of breaking out of the consolidation but it didn't happen today. I still feel we are going to break to the upside. I could be wrong. Gold remains dead money. My ABX calls will most likely be total loss. Fortunately there was not a lot of money in that trade. We'll keep an eye on things overnight and see how the week finishes up tomorrow.
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