Wednesday, April 09, 2014
Roaring back to the upside as the Dow gained 181 points on average volume. The advance/declines were almost 3 to 1 positive. The market liked what it saw in the Fed minutes and took off. Todays action should move the summation index back to the upside. My idea of the April OEX puts doesn't look like it is the right idea after today. However I still may give it a try after looking at all of todays numbers. We'll see. GE was up almost 1/4 but the volume was light. I don't think I'll be attempting any trades for GE near term. Gold did not rally as much as the overall market as the futures only rose a few bucks. The US dollar had another weak session though. My idea that gold would drop on the Fed minutes was wrong. That is what guessing will get you. Always stick with the technicals. The XAU rose 5/8, which wasn't much considering the drop in the dollar. ABX, GG and NEM had fractional gains on about average volume. It looks like the May ABX call trade has been missed. I am maybe thinking about chasing it here but that could be dangerous. Mentally I'm feeling a bit tired. So now the question is where do we go from here? New highs? Or do we roll over again? Only six days to go for the April option cycle. I would like to put on a trade but that may be only because I haven't made one in a while. That is a recipe for disaster as well. You sometimes have to be patient in the game but you also cannot sit on the sidelines forever. Perhaps if we get a light volume rally tomorrow, I'll try the OEX puts. The rally in gold and the gold shares has been steady but lackluster. I might chase things here but I could make a case for just sitting aside as well. The technicals here are pointing up and they have room to go higher. Silver did not follow gold to the upside today and a strong rally would have these two moving in tandem. I'm going to have to think about what to do overnight and see where that leads. We'll look to see if the foreign markets follow the Dow higher tonight.
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