Friday, February 08, 2013
The Dow gained 49 points to close out the week. The advance/declines were 2 to 1 positive and the volume was weak. We are trying to break through the top of the congestion zone here. Perhaps expiration week will be what we need to get through. If we do rally from here I would guess that it won't last long. The stock indices are long overdue for some type of pullback. Not the sideways action that we are experiencing now. But let's see what happens next week first. GE didn't do much all session and the volume was light. My February GE calls are still in the black but with only a week to go, the risk is elevated. I really need to take some kind of profit here because the ABX trade is going to be a loser. I still think GE will attempt to get to $23, I just don't know if it will be next week. Gold fell $4 on the futures as the US dollar finished the day little changed. The XAU fell 3/4. ABX and GG were little changed while NEM slipped 1/3. Volume was light. My February ABX calls are probably going to expire worthless. I doubt the earnings due next week can save them. There hasn't been any good news form ABX for quite some time and gold remains dead money. Chalk it up as another mistake. Mentally I'm feeling OK. A rally today in the stock indexes on light volume. That really isn't a bullish sign. Perhaps we can blame the volume on an impending snowstorm for the northeast. But with so much of what is traded now done by computer, that argument loses some of its validity. Regardless, there are 5 days left in the February option cycle. Perhaps we can grind higher next week. Gold remains above support at $1660 and below the down trend line that has been in place since last October. Whichever way it breaks should provide a decent trading opportunity. I certainly don't know which way that will be. I'll be going over the charts this weekend to hopefully come up with some type of game plan for next week. It's Friday afternoon in the winter and time for a rest.
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