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Tuesday, January 08, 2013

Another loser today as the Dow fell 55 points on light volume.  The advance/declines were about even.  Weakness or sideways action is to be expected this week.  I'm sticking with that thesis for now.  I still think expiration week will be positive.  I'll be looking at the OEX January calls later this week or on Monday for purchase to be held into the end of expiration week.  The summation index is still heading up.  GE was off 1/4 on light volume.  It is trying to hold at the 50 day moving average.  My open order for the GE January calls was filled in the morning.  They are showing a slight loss.  8 days to go in the January option cycle.  I'll probably hold onto these calls until next week.  Earnings due on expiration Friday.  Gold rose $15 on the futures and the US dollar was up a bit as well.  The XAU only managed a gain of 1/3 though.  ABX off 5/8, GG higher by 7/8 and NEM up 1/2.  Volume was OK for the gold shares.  I still have the open order in for the February ABX calls.  It might get filled tomorrow if weakness persists in ABX.  I'm not exactly sure if this trade is worth doing since gold has been dead money for so long.  But I guess I'm willing to try it one more time.  Mentally I'm feeling OK.  I still think we are in a digestion period from the recent huge gains in the stock indices.  The rally has been led by the small cap stocks and that implies higher equity prices moving forward.  The first trade of the year has been filled with the January GE calls.  We'll see what happens.  Gold is trying to hold at its 200 day moving average at around $1660.  Whether or not it does will determine how any gold share trade does in the near future.  We'll keep an eye on the markets overnight and take it from there.

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