Monday, March 17, 2014
Got the bounce today as the Dow rose 181 points on light volume. The advance/declines were almost 3 to 1 positive. No chance to get the March OEX calls this morning but that was the game plan. The market screamed higher from the open, there was no weakness to purchase the calls. The question now? Is this for real? The rest of the week should tell. I think we are in a period of indecision, at least I am. We've got the Fed this week and that should provide more volatility one way or the other. It looks like I won't be trying any trades for the March option cycle. I think we are at a point where it could go either way and maybe just sideways as well. GE was up 1/3 but came well off of its highs. Volume was good. We made it back to the 50 day moving average and turned around. Gold dropped today after the vote tally in the Ukraine. It was a sell the news event for gold. The precious metal futures fell six bucks and that much again in the aftermarket. The US dollar was slightly weaker. The XAU dropped 3 1/3. The short term technicals have rolled over for the gold shares. ABX off 1/2, GG fell 3/4 and NEM lost 3/8. Volume was light though. The daily candlestick pattern for the gold share indexes is bearish after todays price action. It looks like I'll wait to get some ABX May calls in a few weeks. That is the idea for now. Mentally I'm feeling a bit frustrated once again. Wanted the OEX calls this morning for the short term bounce but did not get the chance. The market was up 100 points in the first five minutes. Not sure what is the proper route from here. I'll be on the sidelines again this week most likely. Gold is due for a rest and today is the beginning of that in my opinion. The bullishness for gold at the moment is very high. The gold shares were relatively weaker today and that is not a positive. Patience will be required here once again. We'll watch and see how the foreign markets react to todays pop in the US.
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