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Monday, November 14, 2011

We started off expiration week lower as the Dow lost 75 points on very light volume. The advance/declines were 3 to 1 negative. We came off of the worst levels of the day and the volume was light so I don't think this is the beginning of some kind of huge downside move. But anything can happen I suppose with all the problems in Europe. 4 days left on the November options and I doubt I'll be trying anything with the OEX this week. We're still dealing with the 200 day moving average lines on the major stock indices. GE was off 1/4 on light volume. The January calls are what I'm looking at there and have been for a while. When the premiums get to a level that I'd like to pay and the stock is oversold, that will be the time to try that idea. Gold was down $7 on the futures as the US dollar was higher today. The XAU fell 3 1/3. ABX, GG and NEM were all down a buck on light volume. I'd like to see the gold shares pull back some more before trying the calls here again. May not happen. I'm looking at the December and January options for ABX and GG. We'll see. Mentally I'm feeling a bit tired, did not sleep well. We still remain in an event driven marketplace and once again that is a tougher than usual trading environment. We have expiration week this week and a long holiday week next week with Thanksgiving. The prudent course of action here may just be to do nothing unless a valid technical signal appears. But that should almost always be the case. We'll see what happens overnight and go from there.

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