Monday, August 06, 2012
A slow start to the week for the most part as the Dow gained 21 points on very light volume. The advance/declines were positive. We were up about 90 points but sold off in the last half hour. The technicals are overbought on the stock indexes and a pullback is in order. Not a lot of economic data out this week and I expect this week to be a summer doldrums affair. I could be wrong. GE was flat on the day after hitting a new high for the year. Volume was light. No trades for me here. Gold was up $6 on the futures as the US dollar was a touch weaker. The XAU gained 3 3/4. This is the second time in the past week that the gold shares have out performed the metal itself. That is bullish for the gold shares going forward if it keeps up. ABX and GG had fractional gains while NEM was up 1 1/2. Volume was light. My October ABX calls are still in the red. Mentally I'm a bit tired, not feeling 100%. I expect a drift lower here for the stock indices and then perhaps some strength towards the end of the week. 9 days to go for the August option cycle. Many players are on vacation. I don't anticipate any trades for me in the August option cycle. That would most likely be the prudent course of action. There's always the possibility of a headline from Europe though.