Monday, September 10, 2012
We started the week off on a weak note as the Dow fell 52 points on light volume. The advance/declines were negative. Digesting the recent gains in my opinion as we wait for the Fed later in the week. I might be looking at the September OEX calls for a short term trade here if we get oversold. I do not think this is the beginning of anything big to the downside. As usual, I could be wrong. GE was off 1/8 and volume was light. I am looking at the October calls here on a pullback. I think I will wait on the Fed first though. The gold futures were off $8 and a bit more in the aftermarket. The US dollar only had a slight gain. The XAU was lower by 2 7/8. ABX, GG and NEM all had fractional losses on light volume. I'm still looking at the October gold share calls again. Once again the volume and open interest expanded on the ABX October 40 calls. That could be the next trade. Again, waiting on the Fed is my preferred way to go at the moment. Mentally I'm feeling OK. No real reason for todays decline and there wasn't much conviction in the move. The trend for the stock indices remains up. Gold is taking a slight breather but I do believe that there is more room to the upside there as well. We've got some economic data out this week but all eyes will be on the Fed. I'm guessing it will be a sell on the news event but we'll see. I'll keep an eye on Europe tonight and go from there.