Thursday, May 02, 2013
Back to the upside today as the Dow gained 130 points on average volume. The advance/declines were 3 to 1 positive. The market is trying to make up its mind which way to go here and tomorrow should decide that. The summation index continues higher. The stock indices have the feel of wanting to move higher here. My May OEX puts are back in the red. If we break out to the upside tomorrow I will probably have to dump them at a loss. The technicals for the stock indexes are still short term overbought but that condition could continue while moving higher. The NASDAQ is moving to new highs for the year and that's bullish. GE was up 1/8 on light volume. No trading ideas there for now. Gold moved back to the upside as well, gaining $20 on the futures. This happened despite a very strong upside move in the US dollar. The XAU was off 1/8 as gold and the gold shares remain out of sync. ABX, GG and NEM had fractional moves either way. Volume was average. GG announced their earnings and there wasn't much of a reaction. My October ABX calls remain at a profit for now. Mentally I'm feeling tired, did not sleep well. Employment numbers tomorrow and it would not surprise me to see the market rally. Money continues to flow into US stocks. I get the feeling now that the stock indexes will run higher into the May expiration. I hope I'm wrong for the sake of my OEX put trade. The technicals could point in either direction now. Europe cut rates overnight and their markets barely budged. The money is coming here. Gold has held up well since the crash but that could all change in a day. We'll see if there are any surprises in store tomorrow morning and check out the markets reaction to the numbers.
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