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Wednesday, January 16, 2013

I expected a decent move to the upside today and we certainly didn't get it.  The Dow fell 23 points on light volume.  The advance/declines were negative.  It was a mixed market to be sure, with the NASDAQ moving slightly higher.  The stock indices have been milling around since the huge fiscal cliff spike to the upside.  The summation index continues higher but price is lagging here.  The technicals remain overbought.  I'm still looking for higher prices ahead but not with the same conviction that I had before today.  When the market doesn't do what you expect, then something else is going on that you obviously don't know about.  GE fell a touch on average volume.  Looks like this GE trade will depend on the earnings and that is always just a 50/50 proposition.  The technicals here are mid-range, so just about anything can happen.  Gold was little changed on the futures and the same for the US dollar.  The XAU lost 1 1/8.  ABX, GG and NEM were all lower by 1/3 or so on light volume.  I'm still leaving in the open order for some February ABX calls.  The technicals for the gold shares remain more oversold than overbought.  Mentally I'm feeling OK.  2 days remain in the January option cycle and I decided not to try the OEX calls here.  I expected market strength today and we didn't get any.  So I'm not exactly sure now where we go from here.  GE is simply an earnings play now.  Not exactly my favorite kind of trade.  Gold remains dead money but I'll try the ABX calls if my price is hit for the options.  Hasn't happened yet.  We'll see what tomorrow brings.

1 comment:

Trader said...

Most people trade too often and think T.A. can predict the future. Simply find great stocks get in and ride them as long as possible for 300%+ gains. Holding for many months maybe years. Forget about trying to predict every twist and turn.

Think stocks like TASR +1,500%
HANS +1,200%
TIE: +1,100%

That's how the big money is made.
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