Wednesday, May 07, 2014
A mixed bag for the stock indices today but the Dow gained 117 points on good volume. The advance/declines were 2 to 1 positive. The opposite conditions of yesterday. The summation index is now basically moving sideways. The small stocks were lower on the session but finished off of the worst levels of the day. The Fed head Janet Yellen said the economy is doing good and the big stocks rallied. The market is trying to make up its mind on which way to go. I still believe that caution is advised when it comes to stocks here. GE was up 1/3 on light volume. No trades here for now. Gold took a hit on Yellens remarks and back tracking from Russias Putin on the Ukraine situation. The precious metal futures fell 20 bucks. The US dollar was slightly higher. The XAU dropped 2 points. ABX fell about 1/8, while GG and NEM lost around 1/2. Volume was light. The May ABX calls I have are now solid losers. I don't think they will be able to come back to a profit in the remaining seven days. ABX still hasn't broken the longer term trend line, which is the only reason that I am still holding this trade. Could happen tomorrow though. Mentally I'm still dealing with issues unrelated to the market. Internet issues today as well to deal with, which explains why the blod today is so late. I'm back to thinking that we are heading to new highs again. With expiration week approaching the positive market bias should be in effect. But that's a guess as usual. Gold had a pretty negative session as did the gold shares. I do not expect any turnaround here this week. It is now just a matter of how much of a loss that I will take on the May ABX call trade. We'll see what happens overnight and go from there.
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