Tuesday, January 31, 2012
Another attempt at a one day reversal as the Dow opened higher and closed lower. The Dow fell 20 points on average volume. The advance/declines were positive. We are moving to short term oversold and I would expect a move higher in the stock indices tomorrow or the next day. We also have the positive beginning of the month money flows to bolster the short term bullish case. We've been kind of moving sideways for a week and a half. I expect a positive resolution to the recent indecision. GE fell almost 1/4 on average volume. The Bollinger bands on the daily charts are contracting here. This implies a big move one way or the other soon for GE. I have no idea in which direction. I would still like to get the March calls for GE at some point. We'll see. Gold gained $6 on the futures despite the US dollar being a bit higher today. The XAU was flat. ABX, GG and NEM had fractional moves one way or the other on light volume. I still have in the open order for the ABX February calls. I'm not sure how long I'll leave this order in. However, I'm still a believer in higher prices for the gold shares before the February option expiration. Mentally I'm feeling OK, slept well enough. Seems like we're in a short term holding pattern for the stock indexes here. It should be resolved by Friday at the latest. That's when we'll get the employment report. Gold is overbought and staying there but I still think we've got more room to the upside. We'll see how February starts tomorrow.
Monday, January 30, 2012
The market tried to sell off this morning but buyers stepped in and we closed the day down only 6 points on the Dow. We were down over 100 early. The advance/declines were almost 2 to 1 negative and the volume was weak. We are getting to a point where perhaps we will see some type of pullback in the stock indices. However with the beginning of the month money flows coming in soon, the picture is mixed at best. Any decline can still be purchased in my opinion. The summation index continues higher. GE was off 1/8 on light volume. I'm now looking at the March calls here. No hurry to purchase them though. Maybe at some point in February if we get oversold on a daily basis. Gold fell a touch today on the futures as the US dollar was higher. The XAU was off 1 2/3. ABX and NEM lost 1/3 and GG fell 2/3. Volume was light. I think we are consolidating the recent huge gains in the gold shares and will then move higher. I have an open order in for some ABX February calls. Gold and the gold shares followed the overall market being lower in the morning and then fighting their way back. Mentally I'm feeling OK. Haven't had any real news out of Europe lately and that has contributed to the rise in the stock indexes. It has remained in the background. That could change at any moment and must be kept in mind. Plenty of economic data out this week capped off by the employment report on Friday. We'll see what tomorrow brings.
Friday, January 27, 2012
The Dow was weaker for a second day in a row as we lost 74 points on light volume. The advance/declines were almost 2 to 1 positive as the overall market was stronger than the Dow. The GDP report was a bit weaker than expected. The stock indices, with the exception of the Dow, continued to grind higher this week. We are long overdue for a rest. The back and forth this week could be a sign that the rally is waning. Or not. There seems to be an awful lot of liquidity out there. I'm going to try and wait for some technical evidence of a pending decline. Otherwise the upward grind will continue. GE was flat on light volume. Nothing new to report here. Gold continued to climb, up $5 on the futures and another $5 in the aftermarket. The US dollar was weaker again today. The XAU rose 2 3/4. ABX and GG gained 2/3, while NEM was up a buck. Volume was lighter than the previous 2 days. I had another open order in for some February ABX calls but it wasn't filled and I canceled it. Any kind of pullback or weakness in the gold share calls can be bought in my opinion. I will try and do that next week if I get a chance. I noticed today the volume in the February 50 call strike price for ABX went through the roof. Perhaps that will be the proper choice here. We'll see. Mentally I'm still trying to forget the fact that I missed this explosive move in the gold share calls when I was right there trying to take advantage of it. Obviously improvement is needed. But like I said before, there still may be a chance to make some profit from it. I think the overall market is beginning to signal a change but I could be wrong there as well. It's been an interesting week but now it's time for a break. I'll be going over the charts this weekend and hopefully I'll come up with some type of solid game plan for next week.
Thursday, January 26, 2012
We had a one day reversal today as we opened higher and closed lower. The Dow lost 22 points on average volume. The advance/declines were about even. The overall market was weaker than the Dow today and that's the second time we've seen that here lately. No technical damage has been done to this extended rally in the indices but we're beginning to see signs that it's getting tired and may need a rest. February more often than not is a bit weaker when we are in a rising market. GE lost a touch after opening higher as well. Yesterday it looked like we were going to break out to the upside from the congestion zone. Today we are simply still in the zone. Perhaps the GDP report tomorrow will change things. No trades in GE for now but perhaps the March option cycle. Gold continued higher, adding on to yesterdays gains by $25 on the futures. The US dollar was a bit weaker today. The XAU rose 2 1/4. ABX up 1/2, GG tacked on 1 1/8 and NEM added 1/4. Volume was good. I left in an open order for some gold share calls overnight but it wasn't filled. I'm leaving in another open order for some ABX February calls overnight. Since we've seen a valid breakout in gold, I would expect further gains in the gold shares. The timing is late though. Mentally I'm feeling OK, slept good enough. The rally continues in the stock indexes but I think we are beginning to see signs that it is long in the tooth. I could be wrong but we have remained overbought for a very extended time. Gold has broken out and will move higher in my opinion. We'll wrap things up tomorrow and go from there.
Wednesday, January 25, 2012
The Fed spoke and the market listened as the Dow rose 83 points today on average volume. The advance/declines were 3 to 1 positive. Overbought for weeks now and no sign of a top. I really don't know how long this can go on but I do know this. It will probably last longer than you think and it already has. Summation index continues higher. So the scenario remains the same for now. GE was up 30 cents on OK volume. We're still in the recent congestion zone here but it now looks like GE wants to break out to the upside. I don't have any trades here in mind for GE though. Gold was one of the stories of the day as it rallied $35 dollars on the futures and another $10 in the aftermarket on the Fed. The US dollar fell in reaction to the continued easy US monetary policy. The XAU exploded to the upside by 11 1/3. ABX and GG were both up 3 and NEM rose 2 3/4. Volume was heavy. I placed an overnight order in for the ABX calls but it wasn't filled. I am leaving in an overnight order in for some GG calls in hopes of a pullback. But it probably won't come tomorrow. I do not like to chase moves however in this case price and volume have broken out and that can't be ignored. In retrospect the Gold/XAU ratio was close enough to justify purchasing the gold share calls. The gold exchange traded fund GLD has broken through the downtrend line that has been in effect since September. The next technical expectation would be a pullback towards that line. That will be the point to purchase the gold share calls after missing this opportunity. Mentally I'm feeling a bit miffed for missing the gold share call trade. However the market doesn't care and really, neither should I. But I don't like missing out on decent trades more than I don't like losing money. It doesn't matter though as the game goes on and there will always be another trade. You've got to keep moving on. I'm going to try the gold share calls anyway if I get the chance. I'm also considering some OEX puts for February if we get some sort of RSI or momentum signal. Hasn't happened yet but I'll be looking for that as we go into February. Plenty of economic data at the end of this week but the Fed announcement may trump any of that. We'll see.
Tuesday, January 24, 2012
We opened lower today and tried to fight our way back but the Dow closed with a loss of 33 points on light volume. The advance/declines were positive. The overall market was stronger than the Dow. Still overbought and still no real pullback. The summation index continues higher. We'll get a Fed announcement tomorrow and that may move things. GE was down 1/8 on light volume. We've been moving sideways here for about 3 weeks. No trades there for now. Gold lost $13 as the US dollar was a bit higher. The XAU lost 3 2/3. ABX off 1 1/2, GG fell a buck and NEM dropped 1 3/4. Volume was average or better. NEM has been the leader for the gold shares and we are setting fresh lows there. Oversold on the gold shares and almost at the Gold/XAU ratio buy signal. It's possible that both gold and the gold shares will decline together. Regardless, I'm going to give the gold share call trade a shot this week if the signal comes through. Mentally I'm feeling tired, did not sleep well. The overall market is overbought and I expect some weakness this week. Today was not a real decline in my opinion. The overall market was too strong. So we'll get through the Fed announcement tomorrow and go from there.
Monday, January 23, 2012
A quiet start to the week as the Dow lost 11 points today on light volume. The advance/declines were positive. Nothing new to report really. We've got the Fed this week and that may be the highlight. Still overbought and I'm looking for some type of pullback this week. But we'll need a catalyst for that and I have no idea what that will be. So we wait. GE lost about 1/4 on light volume. No trades there in the near future. Gold continued higher, up about $14 on the futures. The US dollar was weaker today as the euro has begun to move higher. The XAU was up 3 points. ABX gained 1 1/8, GG rose 3/8 and NEM was flat. Volume was average. I'm looking to get long the gold share calls this week on weakness if it happens. May be too late already. The gold share calls are oversold on the technicals. We don't have the Gold/XAU buy signal just yet. If and when that signal occurs we will have a decent risk/reward to put on that trade. I'm looking at the February ABX or GG calls. ABX has shown the best relative strength lately. We'll see. Mentally I'm feeling OK. A new option cycle started today so the premiums are higher than I'd like. That said, if a trade looks good this week I'm going to give it a shot. Tomorrow could be another waiting on the Fed day. More economic data out later this week. I'll try and be patient here on the gold share calls because gold itself is pretty overbought. Gold is also approaching a downtrend line that could prove to be resistance. We'll watch what happens overseas tonight and go from there.
Friday, January 20, 2012
Onward and upward we go as the Dow gained 96 points today on average volume. The advance/declines were positive. Something changed today however as the overall market was much weaker than the Dow. Perhaps this is a divergence worth paying attention to. Or not. It could just be a byproduct of the option expiration today. But it is worth mentioning since this is the first time in a while that we've seen it. Still very overbought on the technicals for the stock indices. This won't last forever. GE came out with its earnings this morning and the stock sold off. However it came all the way back during the course of the trading day to finish unchanged. Volume was heavy. The technicals on GE mirror the overall market. Overbought, staying there and it is overdue for some pullback. Gold was up around $10 on the futures, while the US dollar ended the session practically flat. The precious metal has held up rather well here and is overbought as well. The XAU fell a point though as the gold shares are not following the metal itself. ABX down 2/3, GG gained 1/2 and NEM lost 1/3. Volume was heavy in the gold shares. ABX came out with what was viewed as bad news, in the same manner as NEM did on Tuesday. The technicals on the gold shares are getting oversold. I'm getting a possible positive RSI divergence on one of my ABX charts. The Gold/XAU ratio is almost to the buy signal. So it's possible the time to get the February gold share calls is upon us. The only caveat is that gold itself is overbought. Mentally I'm feeling OK. Still moving higher on the stock indexes but we are both short and medium term overbought. That hasn't stopped us from going up but at some point it will. The question is when? The gold shares are looking interesting to me and I think that next week I'll be giving the February calls a try. We'll see. I will have to check the charts over the weekend and take it from there. For now it's the end of another trading week and time for a rest.
Thursday, January 19, 2012
Moving ahead is what we continue to do as the Dow gained 45 points today on average volume. The advance/declines were almost 2 to 1 positive. The overall market remains a bit stronger than the Dow. There is nothing new to report as the grind higher remains in place. We'll have to wait and see what happens after the option expiration tomorrow. GE was up 1/8 on average volume. Earnings out tomorrow morning and perhaps the Dow will take its cue for the day from that report. No trades in mind there even after the numbers are released. Gold fell $5 on the futures despite the weaker US dollar. The XAU lost 3 1/8. The gold shares have shown weak relative strength here, related to gold itself and the overall stock market. Not sure if it means anything. ABX off 1 1/2, GG down 1/2 and NEM lost 3/4. Volume picked up to the downside. The Gold/XAU ratio is moving in the right direction to offer a buy signal but it might take a few more days. The technicals on the gold shares have rolled over. If and when we reach oversold here will be the time to attempt the gold share calls. That looks as though it will likely be the next trade. Mentally I'm feeling tired, did not sleep well again. It has been a good bullish run for the stock indices and there seems to be no end coming to it in the near term. Calls have been and continue to be the way to go. I'm not exactly sure what is going on with the gold shares here and it will bear keeping an eye on things. The disconnect amongst the shares with the US dollar, gold itself and the stock market strength is puzzling. Perhaps things are weaker here than I think. We'll see. Let's get through Fridays expiration and go from there.
Wednesday, January 18, 2012
Another day another gain as the Dow rose 96 points on average volume. The advance/declines were about 4 to 1 positive. Overbought, staying there and higher we go. Summation index still moving up. The January option cycle has been pretty good for the calls. 2 days to go before expiration. Nothing in the way of more gains at the moment. GE was up 1/4 on average volume. We'll see what happens when the earnings arrive on Friday morning. Gold was up a few bucks on the futures as the US dollar lost ground again. The XAU was up 1 1/4. ABX and GG were off a nickel, while NEM shed 1/2. Volume was average. I'm still considering the gold share calls for the February option cycle. Mentally I'm feeling tired, did not sleep well or enough. The stock indexes continue to be positive and you cannot fight the trend. We've had a good run since the middle of December. The only question is how long will it last? My guess would be longer than expected. Gold hasn't reached its downtrend line yet. When it does it may be a place to short it. However it also may be the spot where gold simply takes a rest before moving higher. Right now I'm believing the latter scenario. We'll see what happens when we get there.
Tuesday, January 17, 2012
Still moving higher although we closed off of the best levels of the day as the Dow gained 60 points on light volume. The advance/declines were positive. We opened up over 100 points and then had a steady erosion throughout the day. No real news to report. The technicals remain the same. There is nothing to suggest at the moment that we just won't continue to grind higher. GE was off 1/8 on light volume. There is really no need to attempt to trade ahead of the earnings that are due Friday morning. The technicals remain overbought as they have been for weeks. The risk of attempting a short term trade here is too high. I will try and remain on the sidelines with regards to GE for now. Gold had a good day, the futures gained over $20 as the US dollar was weaker today. However the gold shares did not follow, as the XAU lost 3 points. ABX and GG lost about 1/3 or so. NEM was the big loser, off 2 1/2. Volume on the gold shares was average to good. Not exactly sure what is going on here but I'm still considering the gold share calls for February as my next trade. If and when the technicals get oversold and the Gold/XAU ratio flashes a buy signal. Patience is required. Mentally I'm feeling OK. 3 days left in the January option cycle and I have no trades in mind. I'm still of the belief that expiration week will have its usual positive bias. After that, who knows? Plenty of economic data out in the next couple of days and there's always the possibility of some type of headline out of Europe. We'll look for the markets reaction to the numbers and news. Take your cues from there.
Friday, January 13, 2012
It was a down Friday the 13th today but it could have been worse. The Dow fell 49 points today on light volume. The advance/declines were almost 2 to 1 negative. We were down over 150 points this morning but came back. Worries about Europe surfaced once again. However this market is resilient. It does not want to go lower in my opinion. It will continue to grind higher next week is my thinking at the moment. It had every reason to sell off hard today but it did not. GE was off a touch on light volume. Maybe I will try the January calls before the earnings in a week. The strike price at 19 might work. Gold was lower today, off about $15 in the futures. We made a comeback here as well in the aftermarket even with a stronger US dollar. The XAU fell 2 1/4 but was even lower early. ABX, GG and NEM were all down 1/2 or so on light volume. I'll have to go out to the February option cycle for the gold share calls if that is what I decide for the next trade. It's possible today was the day to do that. Mentally I'm feeling OK. Still overbought on the stock indexes here but I don't see any big downside anytime soon. Expiration week should have its usual positive bias. I could be wrong depending on what transpires over the long holiday weekend. I'll check the charts and try to come up with some type of game plan for next week.
Thursday, January 12, 2012
Still chugging ahead as the Dow gained 21 points on what now passes for average volume. Nothing out there yet to derail this train. The advance/declines were positive. Volatility has disappeared as the days follow the same lower in the morning, higher in the afternoon routine. Sooner or later we'll pop one way or the other. Overbought, staying there, summation index moving higher. I've been writing the same thing for quite a while. GE was up a nickel on lighter volume. Will I try the January calls here before the earnings next Friday? That's about all there is left to do here. It's probably wiser to pass but that probably won't stop me. Gold was up another $8 today on the futures as the US dollar was lower. The XAU gained 2 points and is up against its 50 day moving average on the daily charts. ABX was flat, while GG and NEM rose 3/4. Volume was average for lately. I'll try the gold share calls if we get some weakness. They've already risen pretty good from the recent lows. Mentally I'm doing OK but could have slept better. We've got Friday ahead of a long weekend coming up tomorrow. I don't foresee any changes from the recent grind away higher pattern. I might look at the OEX puts here since we have been overbought for days. It would have to be a very short duration trade though because the trend is definitely up. I'll ponder things overnight and take it from there.
Wednesday, January 11, 2012
We continue to grind away with an upward bias as the Dow lost 13 points on average volume. The advance/declines were positive. The overall market was stronger than the Dow. The Fed beige book came and went with nothing new. The technicals remain the same, overbought and staying that way. There is nothing to suggest any changes are forthcoming. Summation index moving higher. We are due for some pullback but I don't expect anything drastic. GE bounced back today on lighter volume. It gained 1/8. I'm looking at the January calls for perhaps a trade before the earnings report but it would be very risky. It is probably wiser to look elsewhere. Perhaps the OEX instead. Gold continued to the upside by $8 on the futures and a touch more in the aftermarket. The US dollar had a strong day but that did not deter gold. The XAU gained 1 1/3. ABX, GG and NEM all had fractional moves to the upside on light volume. It looks like I will have to hold off on buying the gold share calls for now. I need to see some weakness here and it just isn't happening. I think that it is too late to chase this move but I could be wrong. Mentally I'm feeling tired, did not sleep well or enough. The song remains the same for the stock indices. The technicals have been overbought for weeks. Yet we continue higher. Gold and the US dollar have both shown strength in the last week or so and that isn't the normal relationship between the two. No real bad news out of Europe and that has helped us move higher. 2 trading days left in the week before a long holiday weekend.
Tuesday, January 10, 2012
We moved to the upside from the recent sideways congestion, as the Dow gained 69 points on average volume. The advance/declines were 3 to 1 positive. We're still overbought and the summation index is still moving higher. I really don't see anything that would stop the market from going higher. However I think it will be more of a grind than a dramatic move up. We won't remain overbought forever. Fed notes tomorrow. GE lost 1/8 on better volume. When the market opened up over 100 points, GE showed a little strength and then started to lose ground. It did not participate in todays rally. To me, that was a warning sign. I dumped the GE calls early. That trade lasted for quite a while and the return was 800%. That's not a typo. Maybe GE will lead the market lower here but I certainly don't know. It's a nice trade to begin the new year but the next trade is all that matters now. Gold was up about $25 as the US dollar fell again today. The XAU rose 3 2/3. ABX up 2/3, GG added 3/8 and NEM higher by 1 1/8. Volume was average. Looks like I am too late for the gold share calls but I will keep them in mind. Mentally I'm doing OK but not feeling well. No solid technical signals at the moment for what I'm following. 7 days left in the January option cycle. Probably a good time to be patient. We do have the GE earnings announcement on expiration Friday. Probably too risky to try anything there but we'll see. No OEX trades in the works at the moment. We'll see if we can build on todays gains tomorrow.
Monday, January 09, 2012
A fairly quiet start to the week as the Dow gained 32 points on light volume. The advance/declines were positive. Summation index continues higher. The trend is up and we're overbought. That has been the case since the year started. Won't go on like this forever but we continue to grind higher. The news out of Europe today was a non-event for a change. Perhaps the Fed beige book on Wednesday will bring some decent market movement. Or not. GE was up another 1/8 on light volume. I again placed a stop limit order for the day but we never came back to it. Still overextended on the technicals for GE but I continue to hold on as we grind higher here as well. Pretty sure I'll be selling the calls this week. The uptrend line on the daily charts from the beginning of December is still intact. Gold fell a bit today despite weakness in the US dollar. The yellow metal was down around $8 on the futures. The gold shares were mixed with ABX up 1/4, GG rose 3/4 and NEM fell 1/2. Volume was light. I'm still considering some gold share calls for February. The technicals are more overbought than oversold though. So we'll see. Mentally I'm feeling OK, slept good enough. The stock indices have been drifting for about a week with overbought technicals. Not exactly sure how that is going to play out. GE continues to show excellent relative strength and that is one of the reasons for holding on to the calls for so long. However this trade has only 8 days to go before option expiration. Plus the earnings are due on expiration Friday. The risk increases with every passing day but that is always the case in this game. We'll check what the overseas markets do overnight and take it from there.
Friday, January 06, 2012
The employment report came and went as the Dow fell 55 points on light volume. The advance/declines were negative. The jobs report was a bit better than expected but the market did not rally. The overall market was stronger than the Dow once again. We're still overbought and staying there. The summation index continues higher. Where we go next is the question as usual. I'd like to see one more pop to the upside but of course I'm holding calls at the moment. I have no idea what next week will bring. Some economic data and the Fed beige book will be out. GE was up 1/8 on average volume. I placed a stop loss order here for the day but it wasn't hit. The GE calls I own are still in the black. The relative strength of GE continues to be strong but I can't hold on to these options forever. They will probably be sold next week. At least they should be. Overbought both short and medium term here. Gold fell a couple of bucks on the futures as the US dollar continues to move higher. In fact it's a mystery to me why gold hasn't dropped this week with the US dollars strength. The XAU fell 1 7/8. ABX off 1/2, GG down 1 1/8 and NEM dipped 1/8. Volume was light. I'd still like to get some gold share calls but not exactly sure about the timing at this point. Perhaps next week. ABX has been showing the best relative strength but there is no guarantee that continues going forward. Mentally I'm a bit tired, did not sleep enough. Both the stock indices and gold have moved higher this week despite the rise in the US dollar. That is the opposite of what you would expect. I don't know why nor do I know how much longer that abnormal relationship can go on. I'm still going to look for higher prices in the beginning of next week for the stock indexes. That could give me an opportunity to dump the GE calls. That is my game plan as of now, subject to revision over the weekend. It's the first Friday afternoon of the new year and time for a break.
Thursday, January 05, 2012
The Dow tried to sell off this morning but once again came back and finished the day with a loss of 2 points on average volume. The advance/declines were positive. The overall market was stronger than the Dow, which leads me to believe higher prices are in the near future. Summation index still moving higher. All eyes will be on the employment report tomorrow. No idea what that holds. The stock indices are still overbought and staying there. This condition won't last forever. No OEX trades in mind at the moment. GE was flat on the day. Volume was light. I've been holding the GE calls for quite some time. They remain in the black. I'm thinking that I will sell them tomorrow or in the beginning of next week. I don't think there will be a big decline here but what do I know? 2 weeks left in the January option cycle after tomorrow. Gold was up another $7 today and a touch more in the aftermarket. This, despite a huge rally in the US dollar. Money poured out of gold in December and now in January it is coming back in. The XAU was off 1/3 today. ABX, GG and NEM had fractional moves one way or the other on light volume. I may go out to the February option cycle if I give the gold shares a try here. I did notice some huge volume and open interest expansion in the ABX February $52.5 calls. The relative strength of ABX has been strong at the beginning of the year so far. However it's also possible that I'll try the GG calls. Not sure why gold hasn't dropped with the strength of the dollar. There are Middle East rumblings again. The gold share technicals are getting overbought short term but not on the medium term. I'd still like to see a near term pullback before purchasing some calls. May not happen. Mentally I'm feeling OK, slept good enough. Waiting on the data tomorrow and the markets reaction to it. I'm leaning towards higher prices after todays market action. That's a guess as usual. Anything could still come out of Europe at any time. So we'll see what happens.
Wednesday, January 04, 2012
The Dow continued higher today but without a lot of conviction. The most watched index rose 21 points on light volume. The advance/declines were about even. We're probably in a wait and see mode until the employment report on Friday. Overbought and staying there. The summation index continues higher. GE was up an 1/8 or so on light volume. I don't know how much longer I'm going to hold on to the GE calls. Overbought on a daily and weekly basis. Possible negative divergence on the daily RSI. Gold continued higher, up a dozen points despite a higher US dollar. The XAU was flat. ABX up 3/4, GG off 1/3 and NEM down 1/8. Volume was light, with the exception of ABX. ABX has been the leader here to the upside. I still might try the calls there if we get some pullback. Not extremely overbought yet. Mentally I'm feeling tired, did not sleep well. Not a lot of action in the stock indices today. The overseas markets were generally weaker but the Dow was resilient. That has been the case lately. We'll see how long that lasts. Gold has had a nice bounce and I still think we could move higher. Need some weakness there to get long. I expect tomorrow to be a non-event in the markets. I've been wrong before and often as well.
Tuesday, January 03, 2012
We started the new year to the upside as the Dow gained 180 points on what looks like light volume. The advance/declines were 3 to 1 positive. We were higher on the day but could not hold onto the earlier gains. Although we were up, I don't like the action. The transports came well off of their highs. I would have liked to see the Dow close near its high for the day. If we have another solid up day tomorrow, then I will feel better about the market moving forward. If not, than I'm not so sure. The technicals are overbought but could stay that way. We had some Fed news today but it wasn't really a market mover. GE was up 1/2 on average volume. Still overbought here and we closed off the highs as well. If we move lower here we will have a negative RSI divergence and that will not bode well for higher prices in GE. My GE calls are still in the black but I will have to think hard about getting rid of them sooner rather than later. We'll see. Gold was one of the stories of the day, up over $30 on the futures. The US dollar was fairly weaker on the day. The XAU gained 8 2/3. ABX up 2 1/4, GG rose 1 1/4 and NEM higher by 2 bucks. Volume was good. Money is coming back into the gold shares and it is probably too late for the January calls here. Any pullback can be bought short term in my opinion. I don't like missing moves but we never got the Gold/XAU ratio buy signal, although we did get a positive RSI divergence. Also had a bullish candlestick pattern at recent support on ABX 2 days ago. Sometimes you miss. Mentally I'm feeling OK. Tomorrow could be key and I'd like to see more upside in the stock indices. If not, decisions will have to be made. Some economic data out this week but all eyes will be on the employment report due Friday. We cannot forget that it is still an event driven atmosphere. Any news out of Europe could move this thing one way or the other. It's a risky environment. More overbought than oversold on the stock indices here as well. Plenty to ponder. Gold has had a nice bounce here as the year starts. Is it for real or just beginning of the year money flows? Time will tell. We'll see what tomorrow brings.