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Monday, November 29, 2010

The Dow started the week with a loss of 39 points on light volume. Advance/declines were negative. We were off over 100 or more for a good portion of the day but came back in the last couple of hours. End of the month tomorrow. Summation index still moving down. We are oversold. No OEX trades for now but I would be leaning to buying some calls before the employment report on Friday. That's my best guess at the moment. GE was up 16 cents but my January calls aren't doing much. Still showing a loss but there's plenty of time left. However I'll need to see some kind of upward movement before the end of the year or I'll book the loss for 2010. Gold was up a couple of bucks as the dollar continued higher. The XAU gained a point. ABX and NEM were down fractionally, while GG showed a slight gain. Volume was light with the exception of NEM. NEM led the way up and there is a chance that it will also lead the way down. There's also a possibility that today was the bottom for NEM as well. We're almost at the 200 day moving average there and the candlestick pattern today could be a star at the end of a downtrend. We'll see. Mentally I'm doing OK, slept well enough. I'm not really getting any clear signals here and so I'm on the sidelines for the short term. I might try something before Fridays employment report if things line up. Which way is anybodies guess. I still feel we will see higher prices going into the new year. It's a matter of how we line up before that. Patience for now.

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