Friday, February 01, 2013
The momentum run continues as the Dow soared 149 points on good volume. The advance/declines were 3 to 1 positive. The employment report was the catalyst but the numbers were really nothing special. It was an excuse to move things higher in my opinion. But it doesn't matter what I think. The market goes where it wants and there is nothing to stop this rally here. The summation index should be back to the upside with todays action. If what we saw in the stock indices was a pause this week, it certainly wasn't much of one. So we'll see how much higher we can go. GE was up 1/3 on average volume. I'm still holding my February GE calls. Perhaps I will wait for GE to reach $23. Something to think about this weekend. Even gold went up today. The futures were higher by $8 as the US dollar lost some ground but the dollar finished well off of the lows for the day. The XAU gained 2 1/4. ABX, GG and NEM all had fractional gains on good to average volume. My February ABX calls remain mired in the red. 2 weeks left there and it would take a minor miracle for this trade to turn positive. Mentally I'm feeling a bit tired, did not sleep well. The employment report has come and gone. It is still up, up and away for the stock indexes as money continues to flow into equities. The trend is higher until we get some kind of turnaround. You cannot fight price. The market can stay overbought for quite a while when we get this type of run. I'm still thinking that we'll remain up into the February option expiration. Gold remains the a laggard here. As I've said before, even good news can't get a rally going there. Eventually there will be a move higher but I've been looking for that for months. Dead money. I'll be checking the charts over the weekend to come up with a game plan for next week. For now it's Friday afternoon and time for a rest.
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