Pageviews past week

Friday, December 10, 2010

The Dow continues to defy conventional logic and grinds higher. It gained 40 points today on average volume. Advance/declines were almost 2 to 1 positive. We really need to see some pullback or this won't end pretty. The market is very overbought still. And I have been saying that for over a week. This won't last forever but we have broken through the overhead resistance at 1220 on the S&P 500. The overall market remains stronger than the Dow. I'd like to see a pullback to 1220 on the S&P and then we could move higher from there. That would be my ideal scenario. GE gained 58 cents on heavy volume as they announced an increase in their quarterly dividend. Overbought here as well. Plus I don't know what other good news could come out for this issue after today. The January calls I own are solidly in the black. I would like to see a consolidation here before moving higher. We'll see. Gold lost $8 today and the XAU was up 1 1/4. ABX and GG were both off fractionally on light volume. NEM gained 1 1/8 on light volume. A mixed picture for the gold shares. The dollar bounced around today but finished a touch higher. I'm still bullish here for the January gold share calls. Mentally I'm feeling good. One week to go for the December options. If we see some weakness early in the week, I'll try the OEX calls. If not it will have to wait for next year most likely. GE has surpassed my expectations already but I'm going to hold on to the calls for now. We'll have to see if expiration week has its usual positive bias. After that, it should be slow going for the rest of the year. Friday afternoon and time for a rest.

No comments: