Thursday, March 28, 2013
Another new high for the Dow and the S&P 500 finally reached one too. The Dow was up 52 points on light volume. The advance/declines were positive. The S&P 500 has now reached record territory. I still think we are at a top here. Next week should tell the story unless we just continue to move sideways. So we'll see. The technicals are still both short and medium term overbought for the stock indices. The volume to reach this point has been very weak. That is not a positive going forward. GE had no change on the day with light volume. No trades there for now. Gold was lower today as was the US dollar. The precious metal futures were down over 10 bucks. The XAU was off 7/8. ABX, GG and NEM were all little changed on light volume. My April ABX calls are still big losers. Three weeks to go in the April option cycle. Mentally I'm feeling OK. We've finished the 1st quarter of the year with a great gain for the stock indexes. The gains were some of the best ever for stocks. Will it continue? Time will tell but I'm looking for the start of a decent decline here any day. I could be wrong and often am. Gold remains dead money and the gold shares have completely under performed in the 1st quarter of 2013. We'll see if that continues going forward as well. We are now on the cusp of a long holiday weekend. I'd expect Monday to be a slow session as all the players start to return. I'll be going over the charts this weekend to come up with some kind of plan for next week. Plenty of economic data next week with Fridays employment report at the top of the list. For now it's Thursday afternoon and time for a break.
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