Friday, August 24, 2012
Back to the upside today as the Dow gained 100 points on light volume. The advance/declines were positive. You had to figure some kind of bounce would arrive. We are still in a summer drift, grind our way higher mode. The volume has been very light and I don't think you can really trust things one way or the other here. I'll repeat that I don't think this is the start of a big decline. We really have to wait until after Labor Day to figure out where we are going in my opinion. But I could be wrong and often am. GE was up 1/8 on light volume. We are right at the daily uptrend line. If you like the calls here, today was probably the day to take a chance and pick them up. No trades for me here at the moment. Gold was flat on the futures today which wasn't bad considering we had a bit of strength in the US dollar. The XAU was flat as well. ABX, GG and NEM had fractional moves one way or the other on light volume. My ABX October calls are still in the black but lost some ground today. The gold shares are overbought here and I'm not sure how much longer I'll hold onto these calls. I'm still thinking that I can sell them and then buy them back cheaper later on. But that's a guess. Mentally I'm feeling OK. The stock indices turned around today and we'll have to see if they can keep it up next week. A fair amount of economic data will be out. We've also got Bernanke flapping his gums on Friday. However it's still considered the summer and trading should remain thin. Gold had a nice week but we're overbought here and maybe need to take a rest. We could simply go straight up but I doubt it. I'll have to go over the charts this weekend and decide from there. The trading is never easy. We'll see what happens next week. It's Friday afternoon and time for a break.