Tuesday, April 01, 2014
Moving on up as the Dow gained 75 points on average volume. The advance/declines were over 2 to 1 positive. The summation index is moving higher. We hit new all time highs on a number of stock indices. The Dow is almost there as well. The small stocks are not breaking out to new highs and that will be a problem if it persists. The month long consolidation patterns are being broken to the upside and that is good news for the bulls. We can expect higher prices moving forward. GE was flat on the session and the volume was light. GE isn't close to a new recovery high. Not sure what that means in the overall scheme of things. Gold was off a few bucks on the futures. The US dollar was flat on the session. The XAU managed to gain 1/3. ABX, GG and NEM all finished the day little changed on light volume. No interest in the gold shares here. I tried the May ABX calls again but wasn't filled. I have my idea of what I'll pay for these options but the price hasn't gotten there yet. Not to mention this idea may not be the right one anyway. Technically oversold though, so I'm going to give it a try. Mentally I'm feeling OK. No overhead resistance for the stock indexes that have broken out and we aren't extremely overbought on a short term basis. The employment report looms on Friday. However if things keep up like this, the news will be viewed as positive now matter what the numbers are. Interesting game. Gold continues to drop and the technicals remain oversold and staying there. Perhaps being bullish on the gold shares here isn't the best idea. Money seems to be finding a home somewhere else. But like I said before, going out to the May option cycle gives the trade time to work. We'll follow the action overnight and go from there.
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