Monday, April 08, 2013
Back to the upside again today as the Dow gained 48 points on light volume. The advance/declines were 2 to 1 positive. This could be the light volume move back to around the 1570 level on the S&P 500 that will be an opportunity to get some April OEX puts. Or it could be the beginning of something else. The overall market was stronger than the Dow today. We've been moving sideways in the S&P 500 since the beginning of March. The top of the range is 1570 and the bottom is 1540. We're at 1563. I think we will have to let the market tell us what to do at this point. I was certain that we were on the cusp of some type of decline but now I am not so sure. GE was up 1/8 or so and the volume was light. No trades here for now. Gold fell $3 on the futures after being higher earlier. The US dollar was up a bit today. The XAU fell about 1 1/2. ABX, GG and NEM were all off 1/3 on average volume. My open order for the ABX May calls is still out there. It was touched today but wasn't filled. In my experience if the premium goes down to your price and it doesn't get filled, it's usually a sign that the trade is going to work. Market makers are not in business to lose money. Mentally I'm feeling OK. The stock indices are acting as though they want to move higher here. If the volume stays light, I may try the April OEX puts. Not a lot of economic data out this week but earnings season begins. 9 days to go in the April option cycle. I'll check the charts again tonight and go from there.
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